The paper has tried to investigate the potency of removing excessive contraceptive subsidyrnor introducing price on the probability of contraceptive use. Data has been collected fromrn300 active contraceptive clients in two districts of South Gondar zone using a standardizedrnquestionnaire. Clients were chosen through probability sampling technique by employing arnhybrid of three stages stratified random sampling, simple random sampling and systematicrnrandom sampling tools. 11,e price that couples are willing to pay was drawn with a biddingrngame elicitation technique. The logistic binary choice model was used for analysis byrnincorporating all possible explanatory variables such as price, age of the woman and itsrnsquare ( control variables), household income, women education, husbands ' agreement,rnnumber of children and side effect dummy.rnThe finding has shown that neither price nor lower income deter the probability ofrncontraceptive use. Couples overlook price and give more value to the continual availabilityrnof a range of alternative methods of contraceptives. Injectables and Norplant are n/Orernresponsive to changes in price than the pill. Large number of children and husband'srnapproval have positive and significant influence on the probability of using contraceptives.rnFree contraceptive users tend to undervalue the price and worth of contraceptives thanrnthose who get the service on payment schedules.rnAs a result, there is a need to revise the current reproductive health and family panningrnprogram implementation scheme. The probability of contraceptive use is a positive functionrnof price implying that the introduction of affordable price in the system and removal ofrnexcessive subsidy is vital to ensure better quality, accessibility and sustainability of familyrnplanning services. A range of contraceptive supplies should be emanated from the need ofrnthe immediate beneficiaries to secure continuity and keep wall/en's reproductive rights.rnContemporary lEC materials should give due emphasis for the involvement of men andrnpromotion of Fee spousal communication ill reproductive health matters.