Tools · Pricing
Pricing power, with the break-even visible.
A simulation instrument for B2B price increases and price elasticity of demand. It computes the exact customer churn your gross margin can absorb before profit declines, removing guesswork and fear from strategic pricing decisions.
B2B Price Elasticity & Break-Even Simulator
Calculate the maximum tolerable customer churn (break-even volume loss) following a price increase. Use your gross margin and price elasticity to determine the exact safety buffer before gross profit declines.
Market Scenarios (Presets)
€
Accounts
%
Proposed Price Change
+ %
Break-Even Analysis & Profit Impact
Max Tolerable Churn (Break-Even)
-15.5%
High Safety Buffer
Expected Volume Churn
-5.3%
approx. 11 of 200 accounts Safety Margin Buffer
+10.2%
Break-even minus expected Net Revenue Impact
+€268,500
+9.0% vs. Basis Gross Profit Delta (Δ GP)
+€268,500
Incremental gross profit Tolerable vs. Expected Volume Churn
Price Increase Scenarios Compared
| Price Change | Break-Even Churn | Expected Churn | Δ Gross Profit | Status |
|---|
Economic Boundary
What this instrument is built on
The mathematical foundation draws on microeconomic price theory and empirical pricing strategy:
- Thomas T. Nagle and Georg Müller (2017): The Strategy and Tactics of Pricing: break-even sales volume formulas and margin elasticity.
- Hermann Simon and Martin Fassnacht (2019): Price Management: value-based pricing, willingness-to-pay corridors, and elasticity measurement.
- Robert J. Dolan and Hermann Simon (1996): Power Pricing: How Managing Price Transforms the Bottom Line.
- Marn, Roegner and Zawada (McKinsey & Company, 2004): The Price Advantage and margin leverage dynamics.
Related journal routes & concepts
This simulator is an active workbench tool. These articles and concept definitions explore pricing architectures: