Modeling a pricing change
Model a price increase or a new tier as an initiative and watch the effect on revenue, churn, and runway before it goes live.
The problem
A price change touches new revenue, expansion, and churn all at once. In a spreadsheet you change one number and hope the second-order effects come out right, then find out a quarter later whether they did.
How YourCFO handles it
Set the new price or tier as an initiative with its own assumptions.
Layer in the churn or conversion effect you expect, so the upside is not just the sticker increase.
Watch how the change nets out across revenue and cash before you commit to it.
you raise prices 15 percent and assume a small churn bump
you see the net revenue and runway effect instantly, not a quarter later.
Ship the pricing change knowing the number it actually moves, not the one you hoped it would.
Related
Model pricing, acquisition, and full P&L impact of a new product before you write a line of code.
Stack the decisions you might make into named scenarios and compare their trajectories side by side.
Auto-generate variance analysis with root-cause attribution, so board prep takes 30 minutes, not three days.
Model your next decision and watch the runway move, then let variance tell you how it landed.