Question 1

Why use this pricing calculator?

Accepted Answer

Most businesses either mirror competitor pricing or rely on simple cost-plus methods. The approach lack a holistic view of pricing strategy.

This calculator provides a structured, market-aware starting point that balances competition, cost structure, value and pricing power to support sustainable profitability.

Question 2

What are COGS and Operating Costs?

Accepted Answer

COGS (Cost of Goods Sold) are the direct costs required to produce or deliver one unit (materials, direct labor, transaction fees).

Operating Costs are indirect business expenses (marketing, salaries, rent, software, logistics).

Question 3

What does “Differentiation Level” mean?

Accepted Answer

Differentiation reflects how unique or premium your offering is compared to competitors.

• Low: Commodity focus. Products are similar to competitors, requiring you to compete primarily on price.
 • Medium: Value-added focus. You offer distinct advantages or features that set you apart from the average competitor.
 • High: Premium focus. A highly customized or unique offering with strong brand value that justifies higher pricing.

Question 4

How does this pricing calculator work?

Accepted Answer

This tool uses a strategic pricing framework that combines:
 • Competitive pricing
 • Cost-plus pricing
 • Differentiation-based (value based) pricing
 • Minimum sustainable margin protection
It ensures your recommended price is both market aware and profit protective.

Question 5

What if I don’t know my competitors’ exact prices?

Accepted Answer

You can estimate using observable market ranges (lowest, average, highest).

If you're unsure, use the average visible market price as your anchor and enter it across all three fields. Even rough benchmarking is better than pricing blindly.

Question 6

Can I get a custom analysis?

Accepted Answer

Yes.
If you want a deeper diagnostic including:
 • Competitive Benchmarking
 • Market Research
 • Market segmentation
 • TAM/SAM/SOM analysis
 • Cost-Benefit Analysis
You can book a consultation at ramesh@rameshkrishna.com(mailto:ramesh@rameshkrishna.com)