The Pricing Strategies spreadsheet helps in evaluating customer price sensitivity by providing visual charts that show the impact of price changes on units sold, revenue, profit, and Customer Acquisition Cost (CAC). It takes into account variables such as Lifetime Value (LTV), marketing spend, and cost over time. This allows for a comprehensive analysis of how price changes affect customer behavior and business profitability.

Asked on the following spreadsheet:

resource preview

Pricing Strategies

Need to evaluate the best pricing strategy for a product? This Pricing Strategy spreadsheet includes the top pricing tools to evaluate cost, feature,...

download
Download this spreadsheet

Get half the model

Excel Copy Google Sheets
Not for commercial use

Or, start for free ⬇️

Download and customize this and hundreds of business spreadsheet templates for free

Voila! You can now download this spreadsheet

Download

spreadsheet Preview

View all chevron_right

Question was asked on:

The charts visualize how changes in price impact "customer price sensitivity" across units sold, revenue, profit, and CAC while accounting for variables such LTV, marketing spend, or cost over time. Remember, you can download and customize this Pricing Strategies spreadsheet to evaluate your own customer price sensitivity right now.

Questions and answers

info icon

Changes in price can significantly impact both the Customer Acquisition Cost (CAC) and the Lifetime Value (LTV) of a customer. If the price is increased, it may lead to a decrease in the number of customers acquired, thus increasing the CAC. However, if the customers are retained for a longer period, the LTV may increase due to the higher revenue generated per customer. Conversely, if the price is decreased, it may lead to an increase in the number of customers acquired, thus decreasing the CAC. But, the LTV may decrease if the revenue generated per customer is not sufficient to cover the costs.

stars icon Ask another question