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Revenue optimization
What is marginal revenue and how is it used in price decisions?
Marginal revenue is the extra money you earn from selling one additional unit after accounting for any discounts or concessions tied to that sale. When marginal revenue exceeds marginal cost, the transaction adds profit. Therefore, pricing teams compare the two curves to spot the quantity where the gap peaks. If lowering the price improves volume enough to keep marginal revenue above cost, the cut makes sense; if not, hold or raise. In subscription businesses, the same logic applies to seat expansions and tier upgrades.
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[Image: AICPA] A circular blue certification seal for the AICPA Service Organization Control (SOC) reporting framework. The logo features white text centered within two concentric blue circles, including a URL and the full name of the organization wrapped along the bottom border.
Text in image: AICPA SOC aicpa.org/soc4so SOC for Service Organizations | Service Organizations TM[Image: CCPA] Circular seal for the California Consumer Privacy Act (CCPA) featuring a dark blue silhouette of the state of California with a yellow padlock icon placed over it. The seal is bordered by a thick blue ring containing white uppercase text, with the acronym "CCPA" centered at the bottom of the inner circle.
Text in image: CALIFORNIA CONSUMER PRIVACY ACT CCPA[Image: HIPPA] A circular blue and white seal for HIPAA compliance featuring a caduceus medical symbol in the center. The badge utilizes a blue gradient and includes the URL for HIPAATraining.com along the bottom outer border.
Text in image: HIPAA COMPLIANT HIPAATraining.com[Image: GDPR][Image: GDPR][Image: ISO][Image: G2 review][Image: G2 review][Image: G2 review][Image: G2 review][Image: G2 review]
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