What Price Maximizes Revenue?

This tool models revenue at five price points (current, ±15%, ±30%) against an assumed price elasticity of demand. Elasticity is the percentage change in customers that follows a 1% change in price. The output shows you which scenario maximizes revenue and by how much, so you can size whether a pricing change is worth the operational cost of running it.

Revenue at the new price = current customers × (1 + elasticity × price change) × new price. If your elasticity is −1.0 and you raise price 10%, you lose ~10% of customers but net the same revenue. If your elasticity is −0.5 (inelastic) and you raise price 10%, you lose ~5% of customers and net +4% revenue. Most B2B SaaS is inelastic for established products and elastic for new commodity-feeling ones.

Three approaches, in increasing rigor. Van Westendorp's Price Sensitivity Meter (4 survey questions per prospect, see the canonical reference) gives you an acceptable-price band cheaply. Cohort-based real-world tests (raise price on new signups, hold price on existing, compare 90-day conversion rates) give you actual elasticity in two months. Conjoint analysis (model trade-offs across price + features + plans, see Patrick Campbell's ProfitWell work) is the most accurate but requires 200+ respondents and a research vendor.

A 1% improvement in pricing yields roughly a 12% increase in operating profit on average across software companies per McKinsey's Pricing Lever Research, summarized in HBR. That's significantly more than acquisition or retention efforts at the same effort level. The reason most companies don't touch pricing is fear of customer revolt, but for B2B SaaS the actual sensitivity is much lower than founders assume.

Use the optimizer before any pricing test: it tells you whether the lift is worth running the experiment. Pair with cohort-based real-world tests for the elasticity number, and with the conversion-rate optimizer to model revenue impact across both axes (price × conversion) at once. The ProfitWell pricing blog is the best ongoing reference on SaaS pricing strategy.