A Smart Bear · Jason Cohen
articleprinciplePricing determines your business model
2 April 2023Profit
Source excerpt
About A Smart BearPricing is inextricably linked to brand, product, and purchasing decisions. It cannot be "figured out later," because it determines your business model today.
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Apollo layer
What a founder can learn
Founder takeaway
Treat pricing as a foundational product and strategy decision, not a late-stage optimization. The price you set shapes your target customer, brand position, product expectations, sales motion, and ultimately the kind of company you can build.
Why it matters
Deferring pricing can create hidden contradictions—for example, between the customer you want, the product you are building, and the cost of acquiring and serving them. Testing pricing assumptions early helps ensure those parts form a viable, coherent model.
Put it to work
For your current price point, write down the customer it attracts, the promise it signals, the buying process it requires, and the economics it creates. Do those choices describe the business you intend to build?