Use startup pricing strategy assumptions to test a pricing change against discounting, contribution margin, retention, and sales-cycle effects, then see when cumulative contribution recovers any early revenue loss created by the decision.
About this interactive
This interactive follows a startup pricing decision through customer retention, discounting, sales-cycle timing, contribution, and revenue recovery. It supports pricing and financial-planning decisions within our FP&A for Startups practice.
Interactive view
Baseline and proposed pricing paths show whether early retention or sales-cycle effects are recovered through later contribution.
What the interactive shows
PRICING COMMITMENT PAYBACK — ILLUSTRATIVE RECORD City Shift Finance CURRENT ASSUMPTIONS Startup pricing: $1,200 / customer / month Pricing change: +15% Discounted new deals: 20% Average discount: 10% Contribution margin: 68% Monthly customer retention: 98.0% Retention change: -0.5 percentage points Sales cycle: 2 months Sales-cycle change: +1 month Monthly new customers: 20 PROPOSED PATH Realized monthly price: $1,352.40 Proposed monthly retention: 97.5% Proposed sales cycle: 3 months 30-MONTH RESULT Maximum early cumulative contribution deficit: $71,647 Contribution recovery: Month 23 Month 30 cumulative contribution — current path: $5,573,959 Month 30 cumulative contribution — proposed path: $5,655,692 Month 30 cumulative contribution difference: +$81,733 METHOD STATUS Each monthly customer cohort begins contributing after the applicable sales-cycle delay. Active cohort contribution then changes monthly using the entered retention assumption. The current and proposed paths are simulated separately over 30 months. Proposed realized price reflects the entered pricing change and expected discounting. The recovery month is the first month cumulative proposed contribution returns to or above the current path after an earlier deficit. Planning analysis only.
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