Capture Consumer Surplus
Identify exactly how much your customers are willing to pay before they churn.
Psychological Anchoring
Use price endings (.99 vs .00) and decoys to nudge users toward higher margin items.
Margin Protection
Structure discounts and bundles so you increase volume without destroying profit.
Optimization Tools
Elasticity Simulator
POPULARModel demand curves & revenue.
A/B Test Generator
POPULARStatistical significance calc.
Discount Strategy
Volume lift requirements.
Bundle Optimizer
Maximize blended margins.
Dynamic Pricing
Algorithmic scarcity pricing.
Seasonality Adjuster
Monthly demand multipliers.
Channel Pricing
Price for different platforms.
Geo (PPP) Pricing
Purchasing Power Parity.
Price Segmentation
Package & fence builder.
Inventory Optimizer
Clearance & velocity math.
Multi-Product Mix
Balance portfolio profit.
Cross-Elasticity
Cannibalization & halo effects.
Price Forecasting
Inflation & growth paths.
Scenario Sim
Best/Base/Worst outcomes.
Promo Lift Calc
ROI of discount campaigns.
Price-Volume-Mix
Bridge revenue variances.
Price Shock Sim
Inflation & threat testing.
Why Price Optimization Matters
Price optimization is the practice of using data analysis to determine the most effective price point for a product or service. Unlike simple cost-plus pricing, optimization considers the elasticity of demand—how sensitive your customers are to price changes.
A McKinsey study found that a 1% price increase translates to an 11% increase in operating profit on average. It is the most powerful lever in business, yet most companies set prices based on "gut feel" or by blindly copying competitors.
When to use these tools:
- Launching a new product: Use the Elasticity Simulator to forecast revenue at different price points.
- Running a promotion: Use the Discount Ladder to ensure you don't erode margins.
- Combating inflation: Use Psychological Endings to raise prices without shocking customers (e.g., moving from $19 to $24 instead of $25).