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Pricing Scenario Generator

Raising a price loses volume, and whether that trade is worth making depends on one number: elasticity. This builds a table of prices from thirty percent below yours to forty above, applies the elasticity you specify to get the volume each would sell, and shows revenue and profit for every row. The useful result is usually that revenue peaks at one price and profit peaks at a higher one, because units you do not sell cost nothing to make.

What this generator does

Takes your price, volume, elasticity and unit cost and builds eight price tiers from −30% to +40%. Each row's volume follows from the elasticity, revenue is that row's own price times its own volume, and profit uses the margin. The peaks are read off the finished table rather than predicted.

How to use this tool

  1. Enter your current price and the volume you sell at it.
  2. Set the elasticity in tenths — 12 means 1.2% of volume lost per 1% price rise.
  3. Enter the unit cost so the profit column means something.
  4. Compare where revenue peaks against where profit peaks.

Understanding the controls

Current price
Today's price, which the table varies around. The rows are proportional changes, so the shape holds at any starting price.
Current volume
How many units you sell at that price today. This scales the table without changing which price wins.
Elasticity (tenths)
Percent of volume lost per one percent price rise, in tenths: 12 is 1.2. Above 10 means raising the price loses revenue; below 10 means it gains.
Unit cost
What one unit costs you. It does not affect revenue at all, but it decides where profit peaks.

Common use cases

  • Framing a price-change discussion with a table instead of an opinion
  • Teaching elasticity with numbers that can be checked by hand
  • Showing why the revenue-maximising price is rarely the profit-maximising one
  • Testing how sensitive a plan is to an elasticity you are unsure of
  • Preparing a pricing options paper for a decision meeting

How this generator works

Each tier's volume is the base volume reduced by the elasticity times the price change, so a 10% rise at an elasticity of 1.2 sells 12% fewer units. Revenue and profit are computed per row from that row's own price and volume, never carried across. Before display every row is re-multiplied and checked, volume is confirmed never to rise as price rises, and the peaks are confirmed to be the genuine maxima of the finished table rather than a separately calculated guess.

Randomness and fairness

Nothing here is random. The same four inputs always produce the same table — this is a model being evaluated, not a scenario being drawn.

For how randomness is produced across the whole site, see how Generate Random works.

Limitations and good to know

  • Constant elasticity is a simplification; real demand curves bend, and a price far outside the range you have actually tested is guesswork.
  • Elasticity is the hardest number in the model to know, and everything the table says depends on it — try a few values rather than trusting one.
  • Competitor responses, brand damage from discounting and volume-related cost changes are all outside the model.
  • This is a modelling aid for discussion and teaching, not a pricing recommendation and not financial advice.

Privacy and your data

The table is calculated in your browser. Your price, volume and cost never leave the page and are not included in analytics.

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