Channel Price Harmonizer
Find the single 'Golden Price' (MSRP) that works everywhere. Satisfy margin requirements across DTC, Amazon, and Retail without breaking parity.
Cost Base
Profitability at MSRP
Uniform Pricing Strategy
Set MSRP at $87.50
The Constraint
The price is driven by DTC, which requires $87.50 to hit margin targets.
Bonus Profit
By selling at this price on your most efficient channel, you make extra margin. See the 'Actual Margin' bars.
Risk Check
Is this price competitive? If not, you need to renegotiate fees or accept lower margins on the constrained channel.
Execution Steps
Enter your Unit Cost.
For each channel, input the 'Cost to Serve' (Fees, Ads, Shipping) and your 'Target Margin %'.
The tool calculates the minimum price floor for each channel.
The 'Harmonized Price' is the highest floor, ensuring you meet profit goals on your most expensive channel.
Pro Strategy
- Set your MSRP based on the Harmonized Price. Don't undercut it on your website or retailers will drop you.
- Use the surplus margin on DTC to offer free gifts or loyalty points (non-price value) instead of discounts.
- If the Harmonized Price is too high for the market, you must either cut costs or delist from the expensive channel.
Core Concepts
Price Parity
Maintaining the same price across all sales channels. This builds trust, prevents channel conflict, and satisfies Amazon's parity clause.
The Lowest Common Denominator
Your global price is dictated by your most expensive channel (highest fees). If you price for your cheapest channel, you will lose money on the expensive ones.
Surplus Margin
By pricing for the most expensive channel (e.g. Amazon), you generate 'Surplus Margin' on your cheaper channels (e.g. DTC or Wholesale).
What is Channel Price Harmonizer?
This tool solves for the maximum constraint. It calculates the break-even-plus-margin price for every channel independently, then identifies the 'ceiling' required to satisfy all constraints simultaneously.
Best For
- • Setting MSRP for a new product.
- • expanding to a high-fee channel (e.g. Wayfair).
- • Auditing global pricing strategy.
Limitations
- • Assumes fixed margin targets.
- • Does not optimize for volume elasticity.
Alternative Methods
Marketplace vs Web
Direct comparison of two channels.
Industry Applications
See how this methodology generates real revenue uplift in different sectors.
Consumer Electronics
Amazon fees required a $50 price. DTC could afford $40.
Set MSRP to $50 everywhere.