Case study
Margin by Design: Calibrating Four Price Tiers to a Hard Margin Floor
A connectivity provider serving tourism venues needed every tariff to clear a specific gross margin point on traffic cost. VeraOren calibrated each tier against actual cost and set it 5 points above the floor.
- Client
- Connectivity provider, hospitality & tourism
- Industry
- Satellite-backed Wi-Fi
- Region
- Central Asia
- Duration
- 1 month
- Services
- Pricing Strategy · Commercial Modelling
- Status
- Delivered
22.3M
MB of monthly traffic analysed
12
Price scenarios modelled
+50%
Data per tier vs conservative option
+25%
Margin per site
The challenge
The provider had a hard rule: every tier must clear a specific gross margin on traffic cost. It needed to know how much data each tier could carry, and how much headroom remained before a cost or currency move breached the floor.
The context
Satellite cost scales with every megabyte carried. When tier allowances are not tied to that cost, margin drifts tier by tier and nobody sees it until it is gone. The fix is a model where each allowance is a direct function of cost and target margin.
What VeraOren did
- 01Set the cost base from actuals.
- 02Held the four price points and calibrated what each one includes.
- 03Modelled three margin variants per tier.
- 04Recommended the optimum variant to absorb cost and currency moves.
The outcome
Four tiers, each calibrated to gross margin on traffic cost, with a buffer against cost increases. Adopted and running a pilot. Margin per site increased by 25%.
Key learnings
01Margin is a design input, not a result.
02Hold the price points; calibrate what customer buys.
03Never price at the floor. Leave room for the next cost shock.
Facing a similar challenge? Let’s talk about what this structure could look like for your market.
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