Free tool
What 1% is worth in your company.
Three annual numbers are enough. You see what 1% on each lever is worth (price, volume, fixed costs, variable costs) and how many sales you can lose on a price increase.
Your numbers stay in your browser: nothing is sent, nothing is saved.
Pre-filled example, not your numbers.
Contribution margin €360,000 (60%)Profit €40,000 (6.7% of revenue)Break Even at €533,333 in revenue
Takeaway
1% of price is worth 15% of profit.
Your profit is only 6.7% of revenue: every lever weighs heavily in proportion. As long as your company makes money, price is always the strongest lever on paper. It's also the least used, because it's scary. Here, you come out ahead as long as you lose less than 1.6% of your sales for +1% on price.
What the calculation doesn't see
It tells you how much each lever weighs. It doesn't tell you which one is playable without breaking your sales, nor on which offer. In the program, we calculate margin offer by offer and pick one lever per quarter.
See my bottleneck with the auditIn the program: week 3, P&L & levers.
The calculation
- Contribution margin = revenue − variable costs.
- Profit = contribution margin − fixed costs.
- Break Even = fixed costs ÷ contribution margin rate.
- Sales you can lose on +1% price = 1 ÷ (margin rate × 100 + 1).
Below Break Even, the levers are compared in euros: a percentage of a negative profit means nothing.
