Test a price rise before you make it.
Enter a few products and a price change. See what it adds to your profit each month, and how many sales you could lose before it stops paying. Works for food and for goods you resell.
Your products
Start with your best sellers. The cost is what one costs you: ingredients and packaging, or what you paid the supplier.
- $$
Use a minus sign to test a price cut, for example -10.
If your prices include sales tax, take the tax out first. It is not yours to keep, so counting it makes every profit here look bigger than it is.
Enter a price, a cost and how many you sell a month for at least one product, and what the change is worth shows up here.
Why a small rise is worth more than it looks
A price rise goes straight to profit, because the cost of the item does not change. Take a burger that sells for $9.50 and costs $5.50 to make: it earns $4.00. Raise the price 5% to $9.98 and it earns $4.48. The price moved 5%, but the profit on each one moved 12%.
How many customers can you afford to lose?
That is the real question behind every price rise, and the tool answers it. If 600 of those burgers earned $2,400 a month, at $4.48 each you only need to sell 536 to earn the same. You could sell 10.6% fewer and not be worse off. Lose fewer sales than that and the rise pays.
A price cut works the same way in reverse. Cut that burger by 10% to $8.55 and it earns $3.05, so you need about 31% more sales just to stand still. That is why a discount has to bring in a lot of new customers to be worth it.
Food or retail, the sum is the same
For a dish, the cost is its ingredients and packaging. For something you resell, like a bag of cement or a phone charger, it is what you paid the supplier for one. Either way the tool only needs the price, the cost and how many you sell.
Everything is worked out in your browser and never sent anywhere.
Do this from your real sales
Kasenso is a free POS that works without signal. It tracks your actual costs and profit per item, so you are not working from estimates. How Price Lab works.