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Pricing & Promotion

When does a price change or promotion actually pay?

Discounts, increases and campaigns, judged by contribution rather than revenue.

Try it nowWalk me through it

Start simple

More revenue doesn’t always mean more contribution.

A discount lowers what every unit earns, not just the extra ones. So sales have to rise by more than the discount looks like it needs. The line has to climb back over today’s contribution — and that crossing point is the sales hurdle.

Takeaway: find the hurdle first. Then ask what evidence would make you believe sales can clear it.

Contribution at 10% off versus units soldA rising line shows contribution at $22.5 per unit: $9.5 per unit times units sold. A dashed line marks today's contribution of $1,800. The rising line crosses it at about 189.47 units. At 180 units, 20% more than today, contribution is $1,710, below today.$1,200$1,400$1,600$1,800$2,000140160180200Units sold in the periodContribution per periodToday: $1,80010% off: units × $9.50hurdle ≈ 189.47+20% units → $1,710
Hypothetical example: $25 price, $13 variable cost, 150 units in a comparable period. Contribution excludes overhead.
Show the numbers as a table
UnitsContribution at 10% offvs today
150$1,425−$375
160$1,520−$280
170$1,615−$185
180$1,710−$90
190$1,805+$5
200$1,900+$100

The path

  1. Layer 1 · Start simple

    What can a five-minute calculation tell me before I change a price?

    Before you change the price, find the sales hurdle. A five-minute walkthrough of the Price Change Review — what it tells you, and what you still need to learn.

    Walkthrough · about 5 minutes · Model-checked

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  2. Layer 2 · Try it

    How many sales does my price change need to pay off?

    Will your price change pay off?. Enter one product's price, cost and sales. See how many units each discount or increase needs to keep today's contribution.

    Tool · about 5 minutes · Model-checked

    Open the tool →

  3. Layer 3 · Explore a case

    Sales just tripled — raise the price, rush more stock, or both?

    The unexpected bestseller. A constructed case. A lamp's sales triple. Raise the price, pay for faster delivery, or both?

    Case · about 8 minutes · Model-checked

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  4. Layer 4 · Go deeper

    What exactly does the sales hurdle assume, and where does it stop?

    What the sales hurdle assumes. What the Price Change Review counts, what it leaves out, and why the hurdle is not a forecast. Formulas are optional.

    Explainer · about 6 minutes · Model-checked

    Read it →

Reading times are editorial estimates, not measured figures.