The Pricing Floor Calculator
4 fill-in slots · from The AI Prompt Handbook for MBAs
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Tell me the lowest price I can defensibly charge in different situations. Product: [DESCRIBE] Variable cost per unit: [AMOUNT] Fixed cost contribution needed per unit at normal volume: [AMOUNT OR DERIVE FROM FIXED COSTS AND VOLUME] Situation: [NORMAL / EXCESS CAPACITY / DISTRESS / COMPETITIVE FIGHT] Give me: 1. The absolute floor (variable cost) — below this every sale loses cash 2. The break-even price at normal volume 3. The target price for a healthy margin at [TARGET MARGIN %] 4. When it's rational to price below full cost, and for how long 5. The danger of anchoring customers or the market to a low price Frame it as a floor, a break-even, and a target, so I know how much room I actually have.
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