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

Type

Your costs and price

How do you count your cost?

Your client's cost of the problem

How do you measure it per month?

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

  1. 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

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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.