Don't Let Growth Hurt Your Margins: A 4-Step Pricing Framework to Build Products With Scalable Unit Economics

Price resets can create significant wins. But if minor changes in price cause massive fluctuations in output-KPIs, there’s a deeper problem: Your product is not working.

The solution is to build a more diversified, customized product and pricing model — moving away from one-size-fits-all and towards granularity. By doing this, you won’t only improve your unit economics, but your product itself will become more appealing.

In the following four-step framework, you’ll break down your user base into value-driving segments, sketching out each segment in four buckets: Needs, Willingness-to-pay, Demographics, and Behaviors. You’ll use these segments to create product and pricing models that scale gracefully.

And while there’s a plethora of writing on innovative pricing models and strategies, this framework will show you how to adapt these models to your product and your business. You’ll learn how to layer pricing models and customize them for your users.