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Price increase impact calculator

What a higher price adds to one unit's contribution, with VAT and the payment fee rescaled on the new gross, and the share of today's volume you could lose before the increase stops paying.

A price increase calculator shows what a higher price does to one unit's contribution and how much volume the store could lose before the increase stops paying. VAT and payment fees are rescaled on the new gross, and the tolerance line is computed on contribution, never on revenue.

Your product

That price is

The shelf price. VAT is stripped before any contribution is computed, because it was never your money.

What one order adds

The parcel and the payment fee exist because the sale happened, and both belong in the before-and-after: the fee even moves with the price.

Volume you could lose before it stops paying

20,8%

The increase adds €4,02 of contribution to every unit, so total contribution holds even if up to 20,8% of today's orders never come back.

Sticker increase

€4,90

what the customer sees

25Contribution gained

€4,02

per unit; VAT and fee take their share

25Contribution after

€19,37

was €15,35

Net price today€41,18
Increase, on the net−€4,1110,0%
Net price raised€45,29
Contribution today€15,3537,3%
Contribution raised€19,3742,8%

The tolerance line is arithmetic, not a prediction: whether customers actually leave is an experiment. Raise in steps, watch orders against the line above, and the increase pays for itself long before the line is reached.

See every price move’s real cost, nightly

The formula

A tenth on the price, a quarter on what you keep

Price increases enjoy the exact leverage that makes discounts so expensive, pointed the other way. The goods, the parcel and the fixed leg of the payment fee do not rise with the price, so almost every net cent of an increase flows straight through to contribution.

When roughly a third of the net price survives the variable costs, ten percent on the price is about a quarter on the contribution, and the tolerance for lost volume is correspondingly wide: the month keeps its total contribution even if a fifth of today’s orders never come back.

Whether they come back is not arithmetic, it is your customers, and the honest use of this page is as a benchmark for that experiment: raise in steps, watch orders against the tolerance line, and reverse early if reality disagrees.

16Net price afterraised gross ÷ (1 + VAT)
25Contribution afternet − goods − fulfilment − fee
Tolerable volume loss1 − contribution before ÷ after

The numbers in the gutter are line numbers on a nouz P&L. A price move enters at the top of the statement and lands, almost whole, on line 25.

Where it goes wrong

Four ways stores talk themselves out of the strongest lever

Underpricing is the commonest quiet leak in small stores, and it survives on exactly these four habits.

  1. Fearing volume loss without pricing it

    “We would lose customers” is a feeling until the tolerance line prices it. If the month holds level at a fifth of volume lost, the fear has to argue that more than a fifth would actually leave, and for most modest increases on differentiated products, it will not.

  2. Raising to fix the wrong problem

    A store bleeding through returns, a mispriced parcel or an ad budget below its break-even ratio will not be cured by a price rise, and may spend real customer goodwill failing to cure it. Price answers a margin question; make sure the margin is the question first.

  3. One blanket increase across the catalogue

    Products differ in how exposed they are: a unique product with strong reviews tolerates far more than a commodity the next tab sells identically. Raise product by product, starting where comparison is hardest, and let each one find its own line.

  4. Forgetting who takes a cut of the increase

    The sticker rises gross, and the tax authority and the gateway are both standing at the till: the VAT inside the extra euros was never yours and the fee percentage rides the new gross. The gain that reaches contribution is real and large, but it is the net figure, and planning with the sticker figure overpromises every increase.

Worked example

A 10% increase on a €49 product, walked up

The calculator’s own defaults: a product on the shelf at €49,00 including 19% VAT, bought in for €18,50, shipped for €6,40 all-in, paid through a gateway taking 1,9% of the gross. Before the change it contributes €15,35 per unit.

The increase moves the sticker to €53,90. The net price rises to €45,29, the fee grows to €1,02, and the contribution lands at €19,37.

A €4,90 sticker increase put €4,02 into contribution: a 26% gain in what the unit keeps, from a 10% change in what it charges. Total contribution now holds even if about 20,8% of today’s orders disappear, which is the line the volume experiment is measured against.

The mirror image of this walk, what a code takes out through the same leverage, is the discount impact calculator below.

New sticker price, incl. VAT€53,90
16Net price after the increase€45,29
17Goods, unchanged€18,50
21Fulfilment, unchanged€6,40
23Payment fee on the new gross€1,02
25Contribution · was €15,35€19,37

Questions

Price increases, answered

How much volume can I afford to lose after a price increase?

One minus the ratio of contribution before to contribution after. On the example product, a 10% increase lifts the unit's contribution from €15,35 to €19,37, so total contribution holds even if about 20,8% of today's orders never come back. That line is the honest benchmark for the fear that stops most increases.

Why do price increases work so much harder than discounts?

Asymmetric leverage. Almost every cent of an increase flows straight through to contribution, because the goods, the parcel and most of the fee do not move with the price. When contribution is a third of the net price, a 10% increase is roughly a 26% increase in what each unit keeps, the mirror image of the arithmetic that makes discounts so expensive.

Will I actually lose customers?

The calculator cannot know, and neither can anyone selling you a confident answer: elasticity is a property of your product, your competition and your customers, and it is measured, not assumed. What the calculator gives you is the tolerance line to measure against. Raise in steps, watch orders against the line, and reverse course long before it is crossed if reality disagrees.

Should I raise the gross price or the net price?

You set the gross, because that is what the customer sees, and this calculator applies the increase there. Your gain arrives on the net: the VAT inside the extra euros goes to the tax authority and the gateway takes its percentage of the new gross, which is why the contribution gained per unit is smaller than the sticker increase.

When is a price increase the wrong fix?

When the unit economics were never the problem. A store bleeding through untracked returns, a heavy parcel on a light basket, or an ad budget below its break-even ratio will not be saved by a price rise, and may lose the volume without curing the leak. Price answers a margin question; diagnose which question you actually have first.

Where does a price change land on the P&L?

At the very top: line 1 is the full ticket value of what was ordered, and the new price flows from there through net revenue on line 14 into every margin below it. If you lower a price against a compare-at price instead of raising it, the gap shows up on line 2 as a price reduction, which is how a statement keeps quiet price erosion visible.

See what the increase did, on the days it was live

nouz prices every order by the rules effective on its own date, so a price change shows up as exactly what it was: this contribution before, that contribution after, day by day.