DataIntermediate 2 to 3 hours

Dynamic Pricing Model

Build a what-if model with data validation dropdowns and conditional formatting.

The Scenario

A SaaS startup wants to model how changing their subscription price affects revenue. They currently have 5,000 customers at R199/month. They believe a 10% price increase will cause 3-8% churn, but are unsure.

The Brief

Design a spreadsheet model (describe it in detail) that lets the CEO pick a price change percentage from a dropdown and instantly see projected revenue, churn impact, and break-even month.

Deliverables

  • The model layout: which cells are inputs, which are calculations, and which are outputs
  • The key formulas including the churn sensitivity calculation
  • How you would use Data Validation dropdowns and Conditional Formatting to make it user-friendly
  • A sensitivity table showing revenue at 5%, 10%, 15%, and 20% price increases with low/mid/high churn assumptions

Submission Guidance

The CEO is the user. The model must be impossible to break by entering wrong values. Explain your defensive design choices.

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