## What is Pricing?

Write your intro here

## Why â€śDo somethingâ€ť

## Simple contribution analysis for pricing

If you make a product that costs $5 to produce and package, how much should you charge for it?

*I donâ€™t know*.

But thereâ€™s a simple bit of arithmetic you can do to understand sensitivity in pricing.

Should you charge $7 or $9?

Well, if you charge $7, you make $2 a unit.

If you charge $9, you make $4 a unit, or twice as much.

Which means, all other things being equal, youâ€™ll need to sell twice as many at $7 as youâ€™ll need to sell at $9.

It doesnâ€™t feel that way, but itâ€™s true. 100 sold at $9 is more profitable than 180 sold at $7. And to take it a step further, youâ€™ll need to sell 800 at $5.50 to make as much as you would have made at $9. Eight times as many.

## Concluding notes

## Resources

https://seths.blog/2018/08/all-other-things-being-equal-simple-contribution-analysis-for-pricing