What one unit costs you to deliver.
Marginal cost is the floor: what serving one more customer for one month costs you. You never price below it.
ROI = (price − cost) ÷ cost. A target of 2 means every dollar of cost should return two. The model flags whether your price clears it.
What the outcome is worth to the buyer.
Value sets the ceiling: what the customer would pay to get the same result another way. Method: Economic Value to the Customer (Forbis & Mehta, 1981).
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.
Height on the chart is profit relative to the best achievable.
SMB buyers sit near 2.0, enterprise near 0.5. A price test measures yours.
Your pricing corridor.
Cost sets the floor. Value sets the ceiling. Elasticity finds the optimum between them.
The research behind each step.
Every mechanism traces to a published source. The only inputs are yours.
A decision aid, not financial advice. A live price test replaces the elasticity assumption with your measured value.
Want this built into your go-to-market?
Pricing is one of the systems Flow builds for startups, alongside search, outbound and content.