Part five · Saying it and reading it · Chapter 14

THE PRICE RISE SCORECARD

Judge the rise on whether the customers who saw it kept buying, at 90 and 180 days, against a comparison. Conversion rate is a guardrail, not a verdict.

The week after a rise, someone will read the conversion rate and declare victory or defeat. Both are premature. New visitors have no reference price. The stock-up window moves orders around the date. And customers who leave over price just don’t come back: in Anderson and Simester’s experiment the lost orders showed up over 28 months Published.

Build the comparison first

You need something to compare with, decided before the rise. Three workable options, best first:

Randomly holding some customers at old prices gives the cleanest answer, and creates what chapter 9 warns about: two customers paying different prices. If you do it, keep the group small, give it an end date, and have counsel review it. The Honest Test covers price tests.

The page

NumberDefined asWhenWhat it catches
Volume against break-evenUnits per SKU, four-week average after the stock-up window, against break-even (chapter 3)WeeklyA rise losing more than it can afford
Contribution per SKUMonthly contribution against the same months beforeMonthlyWhether the rise earns what it should
90-day repeat rateShare of customers active before the rise who reordered within 90 days, against the comparisonDay 90The early read on existing customers
180-day repeat rateThe same, at 180 daysDay 180The verdict
Subscriber survivalShare active through the first two renewals at the new priceEach renewalSubscribers leaving quietly
Price cancellations and ticketsCancellations and tickets citing price, per 1,000 ordersWeeklyA story that isn’t landing
Tier mixShare of orders in each tierWeeklyBuyers sliding down the ladder (chapter 7)
New-customer conversion and first-order valueAgainst the four weeks beforeWeeklyA guardrail on acquisition, not the verdict

Conversion tells you how strangers took the price. Retention tells you how your customers took the rise.

Reading it

At 90 days, compare each SKU’s volume loss with its break-even and the repeat rate with the comparison. Volume loss well inside break-even and a repeat rate close to the comparison is a rise that worked; confirm it at 180 days. If repeat rate falls further behind than the break-even allows, the fix is usually in chapter 9 or chapter 10, not a price cut. Rerun the tool in chapter 8 with the loss you saw before the next rise.

Do this

This is one chapter of The Price Rise, which is free and readable in full on a single page with no form in front of it.