Conservative annual value
$5,130
Gross modeled benefit after the realization factor.
Pricing Workflow ROI Calculator
Estimate conservative annual value from margin protection, faster supplier cost recovery, and labour savings. The break-even basis point result gives executives a simple way to test whether the subscription cost is plausible against affected pricing revenue.
Inputs
Pricing workflow assumptions
Operating inputs
Use current revenue, timing, update volume, and labour-cost inputs from your pricing workflow.
Used for context. The model is driven by revenue affected by pricing decisions.
$ / year
Revenue where pricing workflow can plausibly influence decisions.
$ / year
$ / year
days
updates
hours
$ / hour
Model assumptions
These are modeling assumptions, not guaranteed NewAxiom results. Keep them conservative and adjust them when better evidence exists.
0.05% equals 5 basis points.
%
%
Assumption for modeling only, not a guaranteed NewAxiom result.
days
Assumption for modeling only, not a guaranteed NewAxiom result.
hours
%
Executive proof point
Break-even margin protection
0.075% / 7.5 bps
NewAxiom pays for itself if it protects about 0.075% of affected pricing revenue.
Annual NewAxiom cost
$3,000
Net annual benefit
$2,130
ROI
71%
Payback period
7 months
Review this modeled estimate
Use your numbers as a starting point for a pricing workflow discussion.
Modeled estimates
Modeled value breakdown
Value-driver breakdown
Modeled annual value before applying the realization factor.
Margin protection value$2,000
Cost recovery delay value$2,740
Labour savings$2,100
Value compared with estimated cost
Conservative annual value compared with estimated annual subscription cost.
Conservative annual value$5,130
Annual NewAxiom cost$3,000
Break-even basis-points gauge
Annual subscription cost as basis points of affected pricing revenue.
0 bps10.0 bps scale
Modeled estimate only. Lower break-even basis points mean less margin protection is needed to cover the estimated annual subscription cost.
Supporting value drivers
Annual modeled value before the realization factor
Margin protection value
$2,000
Affected pricing revenue multiplied by the margin protection assumption.
Cost recovery delay value
$2,740
Supplier-change revenue exposure reduced by faster implementation timing.
Labour savings
$2,100
Hours removed from recurring pricing updates multiplied by update volume and loaded labour cost.
Methodology
Margin protection value
Affected pricing revenue is multiplied by the margin protection improvement. This models value from avoiding missed margin, inconsistent pricing, or under-recovery across the revenue scope you enter.
Cost recovery delay value
Supplier-change revenue is divided into a daily exposure, multiplied by the number of implementation days reduced, then multiplied by the average supplier cost increase.
Labour savings
Hours removed from each pricing update are multiplied by annual update volume and loaded hourly labour cost.
Conservative annual value
Margin protection, cost recovery delay value, and labour savings are added together, then multiplied by the realization factor.
Net annual benefit and ROI
Annual subscription cost is subtracted from conservative annual value. ROI compares that net benefit with the annual NewAxiom subscription cost.
Break-even basis points
Annual NewAxiom cost is divided by affected pricing revenue, then converted into basis points. This shows the small margin protection threshold needed to cover the subscription cost.
Model guardrails
Double-counting warning
Keep each value driver distinct
If the margin-protection assumption already includes faster supplier-cost recovery, set the cost-recovery-delay value to zero or avoid counting the overlap.
Conservative-estimate disclaimer
Treat the output as a modeled estimate
This calculator provides modeled estimates only. Actual results depend on catalog complexity, pricing process, sales behavior, data quality, and implementation.
Related resources
Cost Change Review Playbook
Use a repeatable process for supplier updates, margin exposure, and pricing actions.
Pricing Workflow Readiness Checklist
Check whether data, owners, rules, approvals, and outputs are ready before pricing work begins.
Pricing Workbench
See how pricing review, rules, and exceptions fit into a structured workflow.