Most founders price by gut and leave money. Or viability. On the table. This walks you to a defensible price using cost, value, and the market, and tells you honestly when the numbers can't work.
What this tool does
It combines cost-plus floors, value-based ceilings, and market context to suggest a price range and flags when the model can't sustain a viable price.
Who it's for
Founders setting or resetting a price and wanting more than a guess behind it.
How to use it. Step by step
- Enter your costs. So you know your floor.
- Estimate the value delivered. What the customer gains. Your ceiling.
- Add market context. Competitor and willingness-to-pay signals.
- Read the range. A defensible price band. Or a 'walk away' signal.
How to read your result
If the value-based ceiling sits below your cost-plus floor, the model doesn't work at any price. That's a 'walk away' signal telling you to change the product, cost, or segment.
Worked examples
The same tool behaves differently depending on what you put in. Here are 3 situations.
Cost-plus floor
Inputs: Known costs, target margin.
What the tool shows: Shows the minimum viable price to hit your margin.
What to do: Never price below this without a reason.
Value-based ceiling
Inputs: Clear, quantifiable customer value.
What the tool shows: Shows how much higher you can price than cost suggests.
What to do: Anchor to value, not cost.
Walk-away verdict
Inputs: Value below cost floor.
What the tool shows: Flags that no viable price exists as-is. A sourcing, mix, or model problem.
What to do: Rethink cost or segment before launching.
Common questions
Cost-plus or value-based? Cost sets the floor; value sets the ceiling. Price toward value.
What if it says 'walk away'? The economics don't work yet. Fix cost, mix, or target customer.
Does this replace pricing strategy? It's a strong starting point; talk through the nuances.