Pricing & Contribution Margin Simulator

Realistic cost modeling including RTO reserve, shipping, and marketing assumptions (SRS Section 11)

Variable Cost Inputs (in ₹)

Target Selling Price (₹)

Base Manufacturing / Purchase Cost (₹)

Packaging & Queen Box (₹)

Inbound Transport Allocation (₹)

Customer Delivery Fee / Shipping (₹)

Ad / Marketing CAC Allocation (₹)

Economics Breakdown

Selling Price₹1499

Payment Gateway (2%)-₹30

Return / RTO Reserve (5%)-₹75

COGS + Inbound + Packaging-₹525

Delivery + Ad Marketing-₹255

Gross Margin (Pre-Marketing & Shipping)₹974 (65%)

Net Contribution per Unit

₹614 (41%)

Sustainable unit economics above 25% target.

📖 Golden Rule: Gross Margin (₹974) is pre-marketing. Contribution Margin (₹614) includes ad spend & delivery. Neither should be confused with net profit (which deducts fixed team/tech overhead).

Strategic Scenario Comparison

Regular Price

₹1499

Contribution₹614

Margin %41%

Launch Offer

15% Off

₹1274

Contribution₹389

Margin %31%

Festive Flash Sale

25% Off

₹1124

Contribution₹239

Margin %21%

Clearance / Liquidation

40% Off

₹899

Contribution₹14

Margin %2%