How much volume can you lose after a price increase?
Set your margin and a price change. We show how much volume you could lose and still make the same money. Most owners guess far too low.
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Break-even volume loss = Price increase % / (Current margin % + Price increase %) x 100
This number is your cushion. It says how many customers could walk away after a price increase before the increase stops paying for itself. Think of it as the rope you can let out before anything snaps. At a 40 percent margin, a 5 percent increase gives you a cushion of about 11 percent of your volume, because 5 divided by 45 is about 0.11. The trap is guessing the cushion instead of computing it. Most owners assume it is razor thin, so they never raise prices, and they hand years of profit to their costs instead. The next question a smart operator asks: would real demand actually bend that far? If losing one customer in ten feels unlikely, the increase is safer than it feels.
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The other six questions
How the math works
The volume you can afford to lose after a price increase equals the increase divided by your margin after the increase. At a 40 percent margin, a 5 percent price increase means you can lose about 11 percent of your volume and make the same money. Most owners guess far lower than the real number.
Common questions
How much volume can I lose if I raise prices?
Divide the price increase by your margin plus the increase. Raise prices 5 percent on a 40 percent margin and that is 5 divided by 45, so about 11 percent of your volume can walk away before the increase stops paying for itself.
Will raising prices lose me customers?
Usually some. The question is whether the extra profit from the customers who stay outweighs the profit lost with the ones who leave. Run the break-even volume number first, then judge whether real demand would bend anywhere near that far.
Should I raise prices or cut costs?
They are not exclusive. A price increase lands directly on profit, while a cost cut has to be found line by line. Know your break-even volume cushion first. If the cushion is wide, price is often the faster lever, and you can still chase costs after.
Built by Finalysis, the financial intelligence platform for owner operators.
This is a planning shape, not a forecast. It holds your unit cost steady when the price moves, which is the honest base case. Real demand may bend more or less than the break-even line, so use this to see the size of your cushion, then price with judgment. Nothing you type leaves your device.