40%

Challenge

This DTC brand had no pricing strategy. No contribution margin calculations. No clean historical data. Their former CFO had left a mess - nothing to build on, nothing to trust.

When it came time to plan for Black Friday and the holiday season, they had one question:

What should we charge?

Solution

As their fractional CFO, Prism Edge built a pricing strategy from scratch - fast.

• Ran pricing sensitivity and statistical analysis - We analyzed how different price points impacted ROAS, conversion rates, and order volume across Shopify performance data and ad spend.

• Modeled contribution margins by product - We calculated real unit economics and break-even points for the first time to define how low prices could go—while still remaining profitable.

• Launched strategic A/B price testing - We tested -5% and -10% price points to see how much order volume would increase, and whether it would be enough to offset margin compression.

Impact

The data was clear: the lower price point drove significantly more conversions, and ROAS improved enough to more than compensate for the drop in price.

• 40% YoY revenue increase over Black Friday and holiday season

• No stockouts, no major ad spend changes

By taking a data-driven approach to pricing, the company exceeded their goals and has a repeatable strategy to drive increased sales.

Let’s Fix Your Pricing Strategy

If your current pricing is based on “vibes” instead of margin math, it’s time to change that.