
Chapter 2
Calculate the economic floor
Turn calculate the economic floor into a defensible pricing decision in 45–60 minutes, with explicit assumptions and a measurable test—without choosing a price that loses money after delivery and support.
What you’ll get
- Primary pricing decision: List per-sale costs.
- Working calculation: List fixed and ongoing costs.
- Quality check: Calculate contribution per sale.
Before you begin
Bring the exact package, current costs, expected support, buyer alternatives, and available funnel data. Set a 45–60 minutes timer. Keep facts, estimates, and assumptions in separate columns.
Conversion checkpoint
Price is interpreted with the promise, proof, alternatives, and checkout experience. Do not read low sales as a price problem until you have enough qualified visits and can see where the buyer path loses momentum.
List per-sale costs
Depending on the setup, these may include payment processing, platform fees, affiliate commission, taxes collected or remitted by the seller, per-customer software, fulfillment, support labor, and expected refund/chargeback cost.
Do not assume that digital delivery means every sale has zero cost.
List fixed and ongoing costs
- Design and production
- Editing and accessibility work
- Software subscriptions
- Product updates
- Customer support
- Marketing content
- Paid acquisition tests
- Accounting, tax, legal, or compliance work where applicable
Calculate contribution per sale
Use a simple internal model:
Net revenue per sale
= customer price
− discounts
− transaction/platform costs
− affiliate or partner commission
− expected per-sale tax cost borne by the seller
− expected refund/chargeback cost
− variable support or fulfillment costThen:
Contribution margin % = net contribution per sale ÷ customer price × 100This is a planning model, not tax or accounting advice. Confirm your actual obligations and fee structure for the seller entity and markets involved.
Finish line
- The priced package and boundaries are explicit.
- Costs and assumptions are visible.
- The test changes only one meaningful variable.
- The next price change has a reason and decision rule.







