# The pricing review > A one-page yearly review: realized price, a price–volume–mix split, costs, competitors, AI tools with human checks, and Dana's own review. - Course: [Pricing: Set, Package and Raise Your Prices](https://productovi.com/courses/pricing.md) - Module: How do we test and review prices? - Lesson 31/32, ~24 min - Source: https://productovi.com/courses/pricing/the-pricing-review ## A review, not a reaction **Alex Tutor:** Let's jump ahead to November 2027. After the September change, Nazar sets up a habit: one pricing review a year, every November, before anyone feels like changing a price. **Nazar:** What goes into it? I don't want a 40-page deck nobody reads. **Alex Tutor:** One page, six questions. What did we actually get per lesson? What moved sales: price, volume or mix? Have costs moved the floor? What do competitors charge? What did tests and customers tell us? And the decision: hold, change or test. **Alex Tutor:** Before the numbers: what is the review for? > **Exercise:** What is the main point of Klasna's yearly pricing review? **Hanna:** The second question is mine. October's English sales are 4,756,800 against 4,256,800 a year ago: plus 500,000. Leo says it's all the price rise. Is it? ## Price, volume, mix **Alex Tutor:** Split the 500,000. The price effect is what the +50 earned on the lessons actually sold this October: 7,184 lessons × 50. > **Exercise:** In October 2027 Klasna sold 7,184 English lessons, each 50 UAH dearer than a year earlier. What is the **price effect** in October sales? **Alex Tutor:** The volume effect is the extra lessons valued at last year's average price per lesson: (7,184 − 6,960) × 611.61. What's left is mix: families choosing different package sizes. $$ \Delta S = \underbrace{\textstyle\sum L_{new}(p_{new}-p_{old})}_{price} + \underbrace{(L_{new}-L_{old})\,\bar p_{old}}_{volume} + mix $$ *ΔS: change in sales; L: lessons sold per package size; p: price per lesson; p̄ old: last year's average price per lesson sold.* > **Exercise:** October 2026 sold 6,960 English lessons at an average of 611.61 UAH per lesson; October 2027 sold 7,184. What is the **volume effect**? To two decimals. **Alex Tutor:** And what's left for mix? > **Exercise:** October English sales rose by 500,000 UAH. The price effect is 359,200 and the volume effect 137,000.46. What is the **mix effect**? To two decimals. **Sofia:** So about 359,000 is price, 137,000 is volume and under 4,000 is mix. Leo is mostly right, but not all of it is the price. **Alex Tutor:** And the split is in sales, not profit. Payouts rose to 410 in September, so the contribution view, and the full variance method, live in the course Finance for Product People. The review only needs the direction and the size. **Alex Tutor:** So is the price effect extra profit? > **Exercise:** **True or false:** the price effect of 359,200 UAH means the price rise added 359,200 UAH of profit in October. **Sofia:** And if the review finds nothing new, do we still have to change something? **Alex Tutor:** No. "Hold" is a full answer when the evidence says so. The point is that the decision is made on purpose, once a year, not in a panic after one loud month. ## AI helps, a person checks **Nazar:** I've set up an AI assistant to read twelve competitor price pages every week and summarize support chats that mention price. It also drafts this page for me. **Nazar:** This week it says one rival cut English to 480. **Alex Tutor:** Open the page before you believe it. Here 480 is per person in a group of four, not a one-to-one lesson. The summary was confident and wrong. A person checks every number in the review against its source. **Hanna:** Two more rules. No families' names or messages go into an outside tool unless they're stripped of personal data. And AI-generated "customers" answering a price survey are not evidence of what anyone will pay. **Alex Tutor:** And the tool never sets a price for a person on its own. It monitors, summarizes and drafts; people decide. > **Exercise:** Which uses of an AI tool in the pricing review are sound? Select all that apply. > **Exercise:** **True or false:** the AI summary says a rival charges 480 UAH for English; since the tool read the page, the number can go into the review as it is. ## Dana's one-page review **Dana:** I'll do one too, every August, before my new school year starts. What goes on mine? **Alex Tutor:** The same questions, scaled to you: your rate against your target of about 960 (your floor from the income target stays 480.56), hours actually worked per lesson, enquiries and how many said yes, the waitlist, and the summer. Then one decision for the next year. > **Exercise:** Match each review question with the evidence that answers it for Dana, a tutor who runs her own private practice and reviews her price once a year. ## Your turn: the review paragraph **Hanna:** Write the October paragraph for the review page, so Leo reads the split, not just the plus 500,000. > **Exercise:** October English sales were 4,756,800 UAH against 4,256,800 a year earlier (+500,000); the price effect is 359,200, the volume effect 137,000.46 and the mix effect 3,799.54, and tutor payouts rose from 390 to 410 per lesson in September. Write the October paragraph of Klasna's pricing review (3–4 sentences): the sales change split into price, volume and mix, with numbers, and one thing the split does not show. > **Key ideas** > > - **A yearly pricing review** answers six questions on one page: realized price, what moved sales, costs and the floor, competitors, tests and customer signals, and the decision (hold, change or test). > - **Split a sales change.** October 2027 vs 2026, English: +500,000 = price 359,200 (7,184 lessons × 50) + volume 137,000.46 (224 extra lessons × 611.61) + mix 3,799.54. > - The split is in sales; the contribution and variance view is in Finance for Product People. > - **AI tools monitor, summarize and draft; a person checks every number** against the source. No personal data in outside tools; AI "respondents" are not evidence; no automatic personal prices. > - **A solo review** uses the same questions at small scale: rate vs target, hours, yes rate, waitlist, season. **Alex Tutor:** One case left: back to May 2027, before any of this happened, when Nazar had to write the recommendation that started it. - Previous lesson: [Reading a price test](https://productovi.com/courses/pricing/reading-a-price-test.md) - Next lesson: [Case: Nazar's price recommendation for 2027/28](https://productovi.com/courses/pricing/price-recommendation-case.md) --- Productovi Learning. Free, no sign-up needed to read.