Price check
Enter your numbers. Break-even, margin and your client's cost per day are calculated in your browser from what you type. Every result has an i button that shows its formula.
Your offer
Your costs and price
Your client's cost of the problem
Your assumptions
Prefilled values are assumptions. Change them to yours.
Your numbers
Break-even
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Current margin
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Your client's cost of waiting
Add your client's numbers to see this.
- How many hours a month does the problem cost your typical client?
- What does one hour of your client's time cost them?
- How many months does a client usually wait before solving it?
Packages
Add your costs to see the packages.
- How many hours does one delivery take?
- What does one hour of delivery cost you?
Why 3 packages
Anchoring. When people estimate something, they start from the first number they see and adjust too little. The first number therefore pulls their final answer toward it.
Tversky, A. & Kahneman, D. (1974). Judgment under Uncertainty: Heuristics and Biases. Science, 185(4157), 1124–1131. doi.org/10.1126/science.185.4157.1124
Decoy (asymmetric dominance). Adding an option that is clearly worse than one choice makes people more likely to pick that choice.
Huber, J., Payne, J. W. & Puto, C. (1982). Adding Asymmetrically Dominated Alternatives. Journal of Consumer Research, 9(1), 90–98. doi.org/10.1086/208899
Compromise effect. An option gains share when it becomes the middle choice. The effect is stronger when buyers must justify the decision to others.
Simonson, I. (1989). Choice Based on Reasons: The Case of Attraction and Compromise Effects. Journal of Consumer Research, 16(2), 158–174. www.jstor.org/stable/2489315
Extremeness aversion. Options in the middle of a set look more attractive than options at either extreme.
Simonson, I. & Tversky, A. (1992). Choice in Context: Tradeoff Contrast and Extremeness Aversion. Journal of Marketing Research, 29(3), 281–295. doi.org/10.1177/002224379202900301
Good–better–best. Three tiers serve different buyers: the basic tier attracts price-sensitive buyers, and the premium tier lets buyers who want more spend more.
Mohammed, R. (2018). The Good-Better-Best Approach to Pricing. Harvard Business Review, Sept–Oct 2018. store.hbr.org/product/the-good-better-best-approach-to-pricing/R1805H
Value-based pricing. Set the price from the value the customer perceives, not from your costs.
Nagle, T. T., Müller, G. & Gruyaert, E. (2023). The Strategy and Tactics of Pricing (7th ed.). Routledge. www.routledge.com/9781032016818
These studies explain why a 3-package proposal helps buyers decide. Your results depend on your inputs.