Calculator, Pricing
Can you afford to raise your prices?
Owners fear losing customers. The math says you can usually lose more than you think and still make more money.
Your safety margin
You could lose up to 20.0% of your customers and still make the same profit.
That is 20 of your 100 yearly sales.
At your expected 5% loss, profit from these sales goes from $60,000 to $71,250.
+$11,250
Want help raising prices without losing your best clients? Book a 15 minute call.
How this works
Contribution margin is the money left from each sale after the cost to deliver that sale. The calculator compares your current contribution margin with the larger contribution margin after the price increase.
The break even customer loss is the extra dollars earned per kept sale divided by the new contribution margin. Your projected result applies your expected customer loss to the new margin and compares it with today.
Assumptions: Fixed costs do not change, so they cancel out of the break even answer. Customers you keep buy the same amount as before.
Next step
A price increase should be a decision, not a guess.
If the math works but the conversation still feels hard, let us build the plan for your best clients and your business.