Flow AI.

Free tool

Price your product with the published maths.

Enter your cost, customer value and elasticity. Published economics turns them into your profit-maximising price.

Built by Amber Lan. It is the model behind every Flow AI engagement. Your numbers stay in your browser.

01 · Your cost

What one unit costs you to deliver.

Marginal cost is the floor: what serving one more customer for one month costs you. Every price you set starts above it.

2×

ROI = (price − cost) ÷ cost. A target of 2 means every dollar of cost should return two. The model flags whether your price clears it.

02 · Customer value

What the outcome is worth to the buyer.

Value sets the ceiling: what the customer would pay for the same result another way. Method: Economic Value to the Customer (Forbis & Mehta, 1981).

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value, low
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value, high
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the value ceiling
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03 · The price

The optimum, from the published rule.

The Lerner rule (1934) gives the profit-maximising price from marginal cost and price elasticity alone. Drag the price, or click anywhere on the curve.

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Height on the chart is profit relative to the best achievable.

2.0

SMB buyers sit near 2.0, enterprise near 0.5. A price test measures yours.

Relative profit, peak = 100 ROI floor · value ceiling
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Lerner optimum
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Margin per unit at your price
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ROI · rule ≥ 3
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Where your price sits
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04 · The recommendation

Your pricing corridor.

Cost sets the floor and value sets the ceiling. Elasticity finds the optimum between them.

05 · Methodology

The research behind each step.

Every mechanism traces to a published source. The only inputs are yours.

1The Lerner markup rule · the price. The profit-maximising price satisfies (P − MC) / P = 1 / ε, so P* = MC × ε / (ε − 1).Lerner, A. P. (1934). The Concept of Monopoly and the Measurement of Monopoly Power. Review of Economic Studies, 1(3), 157-175.
2Economic Value to the Customer · customer value. Price is capped by the customer's best alternative.Forbis, J. L. & Mehta, N. T. (1981). Value-based strategies for industrial products. Business Horizons, 24(3), 32-42.
3Cost-competition-value triangulation · the corridor. The standard framework for setting a price inside the floor-to-ceiling range.Nagle, T. T. & Müller, G. (2018). The Strategy and Tactics of Pricing, 6th ed. Routledge.
4Gabor-Granger price testing · measuring your elasticity. Purchase intent at set price points draws the real demand curve.Gabor, A. & Granger, C. W. J. (1966). Price as an Indicator of Quality. Economica, 33(129), 43-70.

This decision aid does not constitute financial advice. A live price test replaces the elasticity assumption with your measured value.

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Pricing is one of the systems Flow AI builds with startups, alongside search, outbound and content.

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