Digital Decision Tools / Industrial Decision Tools / Pricing Advisor
Industrial Decision ToolsPrice it wrong once, and you're either losing money or losing customers.
Enter your real cost structure and what competitors charge. We calculate a cost-based price, compare it against the market, and show you the margin and break-even at each price point. You set a price you can defend.
About this tool
A tool that calculates the price of an industrial product from its cost and target profit margin, and compares it with competitors' prices.
The problem it solves
A factory that prices its product by guesswork and loses its margin or its customers.
What you enter
Direct material cost; direct labor cost; variable overhead; fixed cost share per unit; target margin on the selling price; expected annual volume; annual fixed costs; prices of up to three competitors.
How it is calculated
Margin-based price, markup-based price for comparison, break-even point, profit at expected volume at each price, and the price position against the market.
What you get
Five price scenarios (break-even floor, cost plus margin, matching the competitor average, below market, above market), a verdict on market position, a PDF report and an Excel model.
Questions about the tool
What does the tool not cover?
It is a decision-support estimate built on the figures the client enters, and it does not replace a full study or legal, tax and financing due diligence. It does not replace testing customers' price sensitivity.
How long does it take?
One short session once the figures are ready
How do I go deeper after the result?
The consulting service linked to this tool: "Revenue and Cost Model".
Illustrative example
Industrial Pricing Advisor (Industrial)
Hypothetical, rounded inputs. This example is not a prediction, does not reflect market data and does not describe an actual client. Hypothetical industrial product, machinery sector. Country: Saudi Arabia (Saudi riyal).
Hypothetical inputs
| Item | Value |
|---|---|
| Direct material cost / unit | 100 |
| Direct labor cost / unit | 30 |
| Variable overhead / unit | 20 |
| Fixed overhead allocated / unit | 25 |
| Target margin (% of selling price) | 30 |
| Expected annual sales volume (units) | 20,000 |
| Total annual fixed costs (for break-even) | 500,000 |
| Competitor 1 price | 200 |
| Competitor 2 price | 220 |
| Competitor 3 price | 240 |
What the report shows
PRICED ABOVE MARKET Your cost-based price sits notably above what competitors charge. You need a clear differentiator to justify it, or room to trim cost/margin.
| Total Cost / Unit | 175 SAR |
| Recommended Price | 250 SAR |
| Competitor Average | 220 SAR |
| Scenario | Price | Margin | Markup | vs. Market | Break-Even Units | Projected Annual Profit |
|---|---|---|---|---|---|---|
| Break-Even Floor (zero profit) | 175 SAR | 0.0% | 0.0% | -20.4% | 20,000 | 0 SAR |
| Cost-Plus (your target margin) | 250 SAR | 30.0% | 42.9% | +13.6% | 5,000 | 1,500,000 SAR |
| Match Competitor Average | 220 SAR | 20.4% | 25.7% | 0.0% | 7,143 | 900,000 SAR |
| Below Market (aggressive) | 190 SAR | 7.9% | 8.6% | -13.6% | 12,500 | 300,000 SAR |
| Premium | 259.2 SAR | 32.5% | 48.1% | +17.8% | 4,579 | 1,684,000 SAR |
The profits shown assume the expected volume stays constant at every price and do not measure customer response to price.
Not included: It is a decision-support estimate built on the figures the client enters, and it does not replace a full study or legal, tax and financing due diligence. It does not replace testing customers' price sensitivity.
The figures above come from hypothetical inputs; do not measure your own project against them.
Industrial Product Pricing Advisor
Enter your real cost structure and what competitors charge. We calculate a cost-based price, compare it against the market, and show the margin and break-even at each price point. You set a price you can defend.
- True cost per unit: direct materials, labor, and overhead
- Compare margin-based and markup-based pricing
- See how your price compares with the market
- Downloadable PDF report and Excel pricing model