What Should I Charge?
Calculate the revenue impact of optimising your pricing strategy.
Your Metrics
Current State
Current MRR
£12,250
Annual Revenue
£147,000
Projected Impact
Projected MRR
£13,454
Monthly Lift
+£1,204
Annual Revenue Lift
+£14,443
Lift Percentage
+10%
Why This Price Works Better
Our analysis suggests moving from £49 to £56 per month. Here's the critical reasoning behind this recommendation:
1The Profit Leverage Effect
McKinsey research shows a 1% improvement in pricing yields an 11% improvement in profit—far exceeding gains from volume or cost reduction. Your current price may be leaving significant margin on the table.
2Price Elasticity Reality
Our model accounts for demand elasticity—the 15% price increase typically results in only a 5% drop in conversions. The net revenue effect remains strongly positive because higher prices compound whilst conversion drops are proportionally smaller.
3Customer Quality Signal
Higher prices attract customers who value your product and are less price-sensitive. These customers typically exhibit lower churn, higher lifetime value, and better expansion revenue—creating compounding benefits beyond the immediate price increase.
4The Underpricing Problem
80%+ of SMBs set prices once and never revisit them systematically. This "set and forget" approach means most businesses are charging what felt safe at launch, not what the market actually supports. Your willingness-to-pay has likely grown with your product.
The Bottom Line
At £56/month, you would generate an additional £14,443/year in revenue—without acquiring a single new customer. This represents a 10% revenue increase from a single pricing decision. The question isn't whether you can afford to test this price—it's whether you can afford not to.