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This is the pricing strategy chart that Tom shares in some of his pricing presentations:


When you read down the left column, and increase the price of your product or service by that percentage, you look across the top line to find your present gross profit. The resulting intersection of the two percentages indicates what percentage of your sales you can lose and still maintain the same amount of gross profit dollars.

10%
15%
20%
25%
30%
35%
40%
50%
5%
33.3
25.0
20.0
16.7
14.3
12.5
11.1
9.1
6%
37.5
28.6
23.1
19.4
16.7
14.6
13.0
10.7
7%
41.2
31.8
25.9
21.9
18.9
16.7
14.9
12.3
8%
44.4
34.8
28.6
24.2
21.1
18.6
16.7
13.8
10%
50.0
40.0
33.3
28.6
25.0
22.2
20.0
16.7
11%
52.4
42.3
35.5
30.6
26.8
23.9
21.6
18.0
12%
54.5
44.4
37.5
32.4
28.6
25.5
23.1
19.4
15%
60.0
50.0
42.9
37.5
33.3
30.0
27.3
23.1
16%
61.5
51.6
44.4
39.9
34.8
31.4
28.6
24.2
18%
64.3
54.5
47.4
41.9
37.5
34.0
31.0
26.5
20%
66.6
57.1
50.0
44.4
40.0
36.4
33.3
28.6
 

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Tom Shay
PO Box 128
Dardanelle, AR 72834
(727)823-7205

APRIL 2025
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BOOK US

With over 25 years of frontline experience Tom Shay is America's leading Small Business Management Expert. He's a "Must Have" for your next event.

Small Business

Advisories

Have you ever said to an employee, "Do you know how much that costs"?

Their answer is no, and that could be a problem for your business. The April Small Business Advisory discusses sharing financial information.

Small Business

News

 

Top Story

Some people are proactive; others are reactive. What do each say about your management style?


Article of the Month

We look at a study of banks in determining if you are selling 5 to 1 or 1 to five. It is important to your business.


Book of the Month

Who knew? Jay Z is more of an entrepreneur than a rapper. The book is, "Empire State of Mind: How Jay Z Went from Street Corner to Corner Office".