MarginWorkshopRaise Prices or Chase Volume
Compare raising prices against chasing more volume, head to head, using the same profit model, to see which strategy actually wins.
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Next Decision
Based on your results, these related decisions are available.
Methodology
Formula: Raise-prices path reuses Price Increase Impact Simulator’s identity: profit = revenue × (1 - attrition) × (price increase % + margin %). Chase-volume path: new revenue × margin %, minus the cost of acquiring that growth.
Assumption: Chasing volume is never free; be honest about what it costs to generate that growth (ads, discounting, extra sales time).
Limitation: Both paths use independently-entered revenue/margin assumptions, not autofilled, since these are business-average assumptions worth reconsidering each time.
Frequently Asked
- Why does raising prices often beat chasing volume?
- A price increase drops straight to margin on every unit already being sold, while a volume increase carries the full marginal cost of producing and delivering that extra volume, so the profit impact per dollar of revenue is usually very different.
- What volume growth rate should I test?
- Use a realistic, achievable growth rate for your market and capacity, not an aspirational one; an unrealistic volume assumption will make the volume strategy look better than it actually is.
- Does this account for capacity constraints on the volume side?
- No, it compares profit dollars directly; if chasing volume also requires adding crew, trucks, or overhead to deliver it, price those costs in separately, since they are not automatically included here.
- Can both strategies be pursued at once?
- Yes, this is a direct comparison of pursuing each in isolation to clarify which lever is stronger; a real strategy can still blend a smaller price increase with some volume growth.