Pricing Strategy Workbench, 3 Methods Compared Excel – Excel XLSX

BENEFITS OF THIS DOWNLOADABLE EXCEL DOCUMENT

1. Calculate a shelf price with cost-based, competitive and value-based pricing, rounded to real price points
2. Compare all three on volume, profit, price index and retailer margin, and see how much volume you can afford to lose
3. Test any price on a profit curve and get a ready-to-use management summary for your recommendation

PRICING STRATEGY EXCEL DESCRIPTION

Pricing Strategy Workbench, 3 Methods Compared Excel is an Excel template (XLSX) available for immediate download upon purchase.

Most pricing decisions in consumer goods are made with one method. Finance starts from cost plus margin, sales looks at the competitor on the next shelf, and marketing argues the product is worth more. Each view is right about something, and each one alone leads to a different price. The Pricing Strategy Workbench puts all three side by side and judges them on the same thing: the profit you actually keep.

Enter your product, costs, route to shelf, competitor prices and your value advantages once. The workbook then calculates a recommended shelf price with each method:

Cost-based: full cost per unit plus your target margin, converted to a shelf price
Competitive: competitor prices converted to price per litre or kilo, weighted by value share, with your chosen price index
Value-based: reference competitor price plus the value of your advantages minus your disadvantages, with a capture share you control

Because consumer goods are priced at the shelf but paid at the factory gate, every price is converted through distributor margin, retailer margin and VAT. Each method is judged on your ex-factory price, not the shelf tag.

The Compare & Scenario tab then shows, for each method and for any price you want to test:

Rounded shelf price points (for example .90 endings)
Price index versus the market average and versus your reference competitor
Expected volume, revenue, contribution and product profit, using your price elasticity
Break-even volume change: how much volume you can lose before the price change stops paying
The retailer's cash margin per unit, so you know how the buyer will react
A profit curve, a price corridor, a theoretical profit-maximising price and an automatic management summary

A Methods Guide tab explains each approach, when to use it and what to watch out for, so you can defend your recommendation to sales, finance and retail buyers.

Seven tabs: Start Here, Methods Guide, Inputs, Cost-based, Competitive, Value-based, Compare & Scenario. Works in Excel 2010 or later, no macros. Comes with fictitious example data; input cells are clearly marked and formulas are protected.

Built by Waterfall Consultancy, drawing on more than a decade of commercial leadership in multinational FMCG.

Source: Best Practices in Pricing Strategy Excel: Pricing Strategy Workbench, 3 Methods Compared Excel Excel (XLSX) Spreadsheet, Waterfall Consultancy