Introduction: Pricing

At this stage in the Growth Program, you’ve evaluated three of the five fits: market, product, and brand. Just two more to go before your growth engine will be ready to scale: model and channel.

In this unit, we’ll turn to your business model. We’ll help you establish your pricing strategy and model fits—in particular, model-market, model-product, and model-channel.

Once you have your business model in place, you’ll also have a clear picture of your ARPU (annual revenue per user) and target CAC (customer acquisition cost). These will be critical as you move into building your acquisition strategy. We want to help you avoid the mistake of launching acquisition channels that cost more than your startup is bringing in.

What you’ll learn

• How to build your pricing strategy (or optimize an existing one)
• How to calculate your unit economics: ARPU and target CAC
• How to assess and improve key business model fits
  • Model-market fit: Align your business model with the market you’re selling to.
  • Model-product fit: Calibrate your model for the product you’re selling.
  • Model-channel fit: Choose acquisition channels based on costs and growth opportunities.