I cannot decide between pricing at 79 or 99: how do I compare the sales each price needs to break even?

The two runs side by side

Fixed costs are 6,000 a month and the variable cost is 45 per unit in both cases. Enter each price in the Break-even calculator and note the result:

• At 79: a contribution of 34, a ratio of 43.04%, and an exact break-even of 176.47, rounded up to 177 units, with revenue of 13,983 at that volume.
• At 99: a contribution of 54, a ratio of 54.55%, and an exact break-even of 111.11, rounded up to 112 units, with revenue of 11,088 at that volume.

The gap is 177 − 112 = 65 units. The lower price needs about 58% more sales than the higher one just to reach break-even, before any profit at all.

Why a 20 difference in price does so much

All 20 goes straight into the contribution, because the variable cost does not change. A contribution of 34 becomes 54, more than one and a half times as much. The closer your variable cost is to the price, the more any price difference moves the unit count.

Notice too that break-even revenue is higher at 79 than at 99. That looks odd until you remember that the lower price needs more units, and every unit carries its own variable cost, so it takes more revenue to cover the same fixed amount.

Deciding between the two

1. Look at your current or expected sales. If you sell 130 units a month at 99, you are above break-even, and dropping to 79 puts you below it unless sales climb to at least 177.
2. Ask whether your customers compare prices closely or buy for another reason, such as quality or fast delivery. The calculator cannot know how they will behave; it only draws the line.
3. Try a third price in between, such as 89: a contribution of 44 and a break-even of 136.36, rounded up to 137 units. Sometimes the middle is the right answer.
4. Once you choose, check the final margin per unit with the Profit margin calculator, and if platform fees apply, work out a price that covers them with the Selling-price calculator.