Costing, Pricing and Profitability Management

About Course

Sales can grow while profit quietly disappears. Many businesses price by copying competitors, adding an arbitrary markup or guessing what customers will pay—without knowing the full cost of delivering the offer. Hidden overheads, uncontrolled discounts, weak margins and loss-making customers then consume cash and growth. This course makes costing, pricing and profitability practical for entrepreneurs, executives and managers.

You will learn to identify direct, indirect, fixed and variable costs; calculate product and service costs; use contribution and break-even analysis; and compare cost-, competitor- and value-based pricing. Realistic exercises cover tiers, packages, subscriptions, discounts, price increases and profitability by product, customer, channel and location. You will build tools that show how price, volume, mix and cost changes affect results.

By the end, you will become the pricing and profitability strategist for your business—able to calculate confidently, defend value and improve margins without relying on guesswork. Successful learners receive a Scalelab Academy certificate, lifetime access and future updates, plus costing templates, pricing calculators, dashboards and course-specific AI tools for research, scenario testing and decision support.

Identify and classify the full costs of an offer.
Calculate product, service and overhead costs.
Use contribution, break-even and target-profit analysis.
Compare cost-, competitor- and value-based pricing.
Assess willingness to pay and price sensitivity.
Design profitable tiers, packages and subscriptions.
Control discounts and credit terms.
Measure profitability by offer, customer and channel.
Test price, volume, mix and cost scenarios.
Plan and communicate price increases.
Build a pricing and profitability dashboard.
Use AI-assisted analysis to create a 90-day action plan.

Course Content

Section 1: Understand How a Business Really Makes Money
Connect sales, costs, pricing, volume and profit and identify the drivers of genuine profitability.

Revenue, Cash and Profit
The Profit Equation
Gross and Net Profit
Why Sales Growth Can Destroy Profit
Profit Drivers
Apply It: Diagnose a Business Model

Section 2: Identify and Classify Business Costs
Find the full cost of operating and delivering an offer, including costs commonly missed in pricing.

Section 3: Calculate Product and Service Costs
Use practical costing methods for products, services, projects, subscriptions and digital offers.

Section 4: Understand Contribution, Break-Even and Profit
Use price-volume-cost tools to calculate break-even, safety and target profit.

Section 5: Set Prices Customers Will Accept
Combine cost, competition, value and willingness to pay to select a pricing approach.

Section 6: Design Profitable Pricing Structures
Turn a price into a commercial model that supports revenue, margin, cash and customer choice.

Section 7: Measure and Improve Profitability
Analyse profit by product, service, customer, channel and location and decide what to improve or stop.

Section 8: Build a Pricing and Profitability Management System
Create a repeatable review process, dashboard, scenarios and action plan supported by AI tools.

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About Course

What Will You Learn?

Course Content

Section 1: Understand How a Business Really Makes Money Connect sales, costs, pricing, volume and profit and identify the drivers of genuine profitability.

Revenue, Cash and Profit

The Profit Equation

Gross and Net Profit

Why Sales Growth Can Destroy Profit

Profit Drivers

Apply It: Diagnose a Business Model

Section 2: Identify and Classify Business Costs Find the full cost of operating and delivering an offer, including costs commonly missed in pricing.

Direct and Indirect Costs

Fixed and Variable Costs

Product and Period Costs

Recurring and One-Time Costs

Controllable and Uncontrollable Costs

Hidden Costs

Apply It: Build a Cost Map

Section 3: Calculate Product and Service Costs Use practical costing methods for products, services, projects, subscriptions and digital offers.

Calculate Unit Cost

Cost Labour and Time

Allocate Overheads

Cost Products

Cost Services and Projects

Cost Digital and Subscription Offers

Apply It: Build a Costing Sheet

Section 4: Understand Contribution, Break-Even and Profit Use price-volume-cost tools to calculate break-even, safety and target profit.

Contribution Margin

Contribution Ratio

Break-Even Sales

Margin of Safety

Target-Profit Analysis

Cost-Volume-Profit Scenarios

Apply It: Solve a Break-Even Decision

Section 5: Set Prices Customers Will Accept Combine cost, competition, value and willingness to pay to select a pricing approach.

Cost-Based Pricing

Competitor-Based Pricing

Value-Based Pricing

Willingness to Pay

Positioning and Differentiation

Choose a Pricing Method

Apply It: Set a Defensible Price

Section 6: Design Profitable Pricing Structures Turn a price into a commercial model that supports revenue, margin, cash and customer choice.

Tiers and Packages

Subscriptions and Retainers

Usage-Based Pricing

Bundles and Add-Ons

Discounts and Promotions

Credit Terms and Cash Flow

Apply It: Redesign an Offer

Section 7: Measure and Improve Profitability Analyse profit by product, service, customer, channel and location and decide what to improve or stop.

Product and Service Profitability

Customer Profitability

Channel and Location Profitability

Mix and Capacity

Improve Cost and Margin

Reprice, Redesign or Discontinue

Apply It: Build a Profitability Scorecard

Section 8: Build a Pricing and Profitability Management System Create a repeatable review process, dashboard, scenarios and action plan supported by AI tools.

Create a Pricing Calculator

Build a Profitability Dashboard

Run Pricing Scenarios

Plan and Communicate Price Increases

Use AI Responsibly

Capstone: Complete a Pricing Review

Create a 90-Day Action Plan