"Should your shop raise prices or reduce processing costs?"
"Source","https://bluefinchadvisors.com/blog/raise-shop-prices-versus-reduce-processing-costs"
"Basis","This planning scenario uses the values entered. It is not an industry benchmark or a quote."

"Inputs","Value","Unit"
"Baseline completed jobs in the period","100","number"
"Current realized price per job","1000","currency"
"Nonpayment variable cost per completed job","650","currency"
"Revenue paid by card","80","percent"
"Variable card-processing percentage","3.5","percent"
"Baseline profit after existing costs","10000","currency"
"Increase from current realized price","5","percent"
"Discount on the increased price","2","percent"
"Share of baseline jobs lost","5","percent"
"Additional repricing-scenario costs","0","currency"
"Net payment-cost improvement at baseline volume","1800","currency"

"Results","Value","Unit"
"Profit change from repricing after lost work","1067.8600000000006","currency"
"Separate payment-cost improvement","1800","currency"
"Repricing improvement minus payment-cost improvement","-732.1399999999994","currency"
"Profit in the repricing scenario","11067.86","currency"

"Calculation detail","Value","Unit"
"Realized price after the proposed discount","1029","currency"
"Modeled retained jobs","95","number"
"Baseline contribution per job","322","currency"
"Repriced contribution per retained job","350.188","currency"
"Baseline revenue","100000","currency"
"Repriced revenue after lost jobs","97755","currency"
"Contribution forgone on lost baseline jobs","1610","currency"
"Contribution gain on retained jobs","2677.8599999999988","currency"
"Profit in the separate payment-cost scenario","11800","currency"
"Repriced revenue change","-2245","currency"

"Assumptions"
"Starting figures are fictional planning examples, not a quote, verified outcome or small-business margin benchmark."
"This single-job-type model holds service mix and nonpayment variable cost per completed job constant. Fractional retained jobs represent a period average, not a bookable fraction of a job."
"Only genuinely avoidable job costs decline with lost volume. Existing overhead and fixed payment charges remain inside baseline profit."
"Card share and percentage stay constant for the price-change calculation, so percentage-based card expense changes with realized revenue."
"The payment-cost alternative holds the baseline sales volume and price unchanged. Its entered improvement is net of remaining costs and must not include an untested customer-retention assumption."
"Reported profit already includes the existing processing expense. The scenario adds the supported expense difference once; it does not subtract the existing fee again."
"Enter remaining or proposed charges only after checking written terms. Blank unknowns are not zero; all fields must be completed before calculation."

"Result notes"
"Negative differences remain visible. A negative profit denominator gives a signed mathematical ratio, not a share of positive profit. Zero denominators are unavailable."
"No retention rate, price acceptance or future sale is guaranteed. If the fee program changes customer behavior, model that separately before comparing or combining strategies."

"Sources"
"U.S. Small Business Administration: break-even point and contribution margin","https://legacy.sba.gov/business-guide/plan-your-business/calculate-your-startup-costs/break-even-point"
"Stripe: credit-card payment processing fee components","https://stripe.com/resources/more/credit-card-processing-fees-explained"
"IRS: why businesses should keep records","https://www.irs.gov/businesses/small-businesses-self-employed/why-should-i-keep-records"