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E-ret@iler - retail management and merchandising in retail speaker Tom Shay's newsletter

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