The problem we address
Product prices are often cost plus a fixed percentage; scattered discounts then eat the margin and nobody knows which product truly makes money. Confusing margin with markup also pushes prices below target.
What we do
- Unit economics per product: cost, variable cost, channel commission and contribution margin
- A price floor from the target margin and a competitive band from the competitor median
- Discount policy: per-channel ceilings, volume and seasonal discounts, approval rules
- Bundles, volume tiers and psychological price points
- Testing new prices on a selected group and measuring the effect on sales and profit
Deliverables
Unit-economics table
Suggested price band per product with written rules
Discount policy and volume tiers
Price-test plan and results report
KPIs we would track
- Contribution margin per product
- Average discount and share of discounted sales
- Gap to competitor median
Who this fits
Manufacturers, brands and stores with dozens to thousands of SKUs.