Most SME owners set prices by feel. This tool shows you the exact margin you are making on every product, your break-even volume, and what happens to profit when costs change or you offer a discount. Five inputs. Instant output.
Real inputs. Real outputs. See exactly what you get before you commit to anything.
This is a live preview of the Pricing & Scenario Modeller — the same tool available to all subscribers.
Subscribe to access →Every tool generates a downloadable PDF report — structured like a professional consultant's analysis, built from your actual data. Below is an example using dummy data.
Pricing is not a marketing decision. It is a financial one. Every pound you add to or subtract from a price flows directly to your bottom line — but only if you understand your cost structure well enough to know where the floor is. Most SME owners do not. They price by feel, by what competitors charge, or by rounding up their costs and adding a number that sounds reasonable. The result is that they work hard, generate revenue, and then wonder why there is never enough money at the end of the month.
The Pricing & Scenario Modeller solves this. It takes five inputs — your selling price, your variable cost per unit, your monthly volume, and your fixed costs — and tells you exactly what is happening commercially. Not approximately. Exactly.
Contribution margin is the amount each unit sold contributes toward your fixed costs and profit after variable costs are paid. If you sell a product for £49.99 and your direct cost to produce or buy it is £18.50, your contribution margin is £31.49 per unit. That £31.49 does two jobs: first it covers your fixed costs (rent, salaries, software, insurance), and then everything left over is profit.
This matters because it reveals the true commercial engine of your business. A high contribution margin with a reasonable volume above break-even creates a very profitable business. A low contribution margin means you need enormous volume before you see any profit — and even then, a small cost increase or price concession can wipe it out.
Your break-even volume is the minimum number of units you need to sell each month before you make any profit. Below it, you are losing money. Above it, every additional unit sold generates pure profit at your contribution margin rate.
This is one of the most practically useful numbers in commercial management. If your break-even is 381 units and you are consistently selling 800, you have a safety margin of 110% above break-even. Your business can absorb a significant volume drop, a price reduction, or an unexpected cost before it becomes loss-making. If your break-even is 750 units and you are selling 800, you have almost no buffer — a bad month, a lost customer, or a supplier cost increase puts you immediately into loss.
Discounting is one of the most commercially destructive habits in small business. It feels harmless — you are just knocking a few percent off to win the order or keep a customer. But the mathematics are brutal at thin margins.
If your contribution margin is 30% and you offer a 10% discount, you need 50% more volume to generate the same gross profit. At a 20% contribution margin, a 10% discount requires doubling your volume. Most business owners do not calculate this before offering a discount. The Pricing Modeller does it for you — the moment you change the price input, the break-even and profit update instantly. You can see the exact volume increase required to justify any discount before you offer it.
UK costs have risen materially since 2022. Freight, energy, labour, raw materials — most inputs are 15–40% more expensive than they were three years ago. If you have not reviewed your pricing since then, your margins have almost certainly compressed without your realising it.
The scenario modelling feature lets you test the commercial impact of cost changes before they hit. Increase your direct cost by 10% and see immediately what happens to your margin and break-even. You can then decide whether to absorb the increase, pass it on, or find a cost reduction elsewhere — with the exact numbers in front of you rather than a gut feeling.
Enter your selling price (excluding VAT), your direct variable cost per unit, your expected monthly sales volume, and your total monthly fixed costs. The tool calculates contribution margin, monthly profit, annual profit, and break-even units instantly. You can then adjust any input — price, cost, volume — and watch the outputs update in real time. The PDF report captures the full analysis with commercial interpretation and recommended actions.
If you are in portfolio mode, you can add multiple products and the tool calculates blended contribution margin, total portfolio revenue, and the combined break-even across your whole range. It identifies your highest-margin products (A-class), acceptable performers (B-class), and the drag items that are diluting your blended margin (C-class).
The Pricing Modeller is included in every LumixAI subscription. £19.99/month. 7-day free trial. Cancel any time.