Price Increase Risk Tool
Calculate the revenue gain of a price hike and the volume-loss threshold for safety.
Hike Logic
Hike Analysis
Quantifying the upside
Revenue Lift
You gain $10,000 in extra revenue if volume stays flat.
Risk Ceiling
You can lose up to 9.1% of your customers before you are worse off than today.
New Price
Your target price is $110.00.
Execution Steps
Enter current price.
Enter intended increase %.
View the 'Safety Margin' (Max volume loss allowed).
Pro Strategy
- Smaller, frequent increases (3-5%) are tolerated better than one large 20% jump.
- Communicate value improvements alongside the hike to reduce churn.
- Grandfather existing users for 3-6 months to maintain loyalty.
Core Concepts
Revenue Parity
The point where the gain from higher prices is exactly cancelled by the loss of customers.
Price Anchor
Current users are anchored to the old price. New users are not.
Safety Margin
The buffer of volume loss you can afford before the hike is net-negative.
What is Price Increase Risk Tool?
Applies simple multiplier logic and reverse-elasticity breakeven math: 1 - (Old/New).
Best For
- • Annual price reviews.
- • Inflation passing.
- • Margin expansion.
Limitations
- • Assumes all users see new price.
Alternative Methods
Elasticity Simulator
Uses actual PED coefficients.
Industry Applications
See how this methodology generates real revenue uplift in different sectors.
Netflix Hike
Rising content costs.
15% price increase.
Downloadable Resources
No templates available for this tool yet.