Pricing calculators

Four questions about your prices

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Calculator

How much volume can a 5% price rise afford to lose?

The breakeven volume for any price change, from your contribution margin. How much volume a rise can lose, or a cut must win, before profit stands still.

You can lose 14.3% of volume before the rise stops paying.

Most businesses overestimate how much volume a rise costs. That gap is the money.

Calculator

What is 1% of price worth against 1% of volume or cost?

What a 1% improvement in each lever does to your operating profit. One of these bars is not like the others.

1% better price$0.50m
1% more volume$0.22m
1% off variable costs$0.28m
1% off fixed costs$0.18m

On your numbers, 1% of price is worth 13% of this year's profit.

Assumes volume holds when price moves 1%.

Calculator

How much of your list price reaches the bank?

The pocket price on every $100 of list, after discounts, rebates, freight and the cost of your payment terms.

List price$100.00
Invoice price$88.00
Pocket price$80.42

Of every $100 of list price, you bank $80.42.

$7.58 of the $19.58 gap never shows on an invoice. The extra credit alone costs $0.58.

Calculator

How small can an order be before it loses money?

The smallest order whose margin pays for its own processing, picking and delivery.

One order
The goods

An order must be worth $357 to pay for itself.

$107 an order ÷ 30% margin. A $250 order earns $75 of margin and loses $32 once it is processed, picked and delivered.

Order costs take 43% of that order's value.

Figures are estimates, not advice.