What do we charge, and does the money work?
Tell me what to charge, what to charge for, and whether the unit economics survive a conservative case.
A disciplined run
12 calls
Which costs
$2.40
Stop at
20 calls
Reading this
Free
The method
Madhavan Ramanujam's willingness-to-pay discipline — price before you finish building, segment by need, and treat how you charge as more consequential than how much — followed by the CAC and LTV arithmetic done in the open.
Use this one when
Setting a first price, changing a price, or picking a value metric. Also when growth is fine and margin is not.
Which tools does this playbook call?
What do we charge, and does the money work? calls 9 operations, in the order below. A disciplined run spends 12 of them, $2.40 in total.
- web_fetch
- keyword_suggestions
- keyword_volume
- keyword_intent
- keyword_forecast
- company_jobs
- app_reviews
- social_reddit_posts
- ads_creatives
What do you have to supply?
- productrequired
- The product being priced, in a sentence.
- segment
- Buyer segment: b2c_sub, prosumer, b2b_smb, or b2b_mid. Sets funnel and churn defaults.
- price
- Intended monthly price, if you have one. The run will try to break it.
- competitor
- A competitor domain whose pricing page anchors the range.
How do you run it, step by step?
What is being priced
<the product being priced>
FINDING URLS. Several tools take a URL and cannot search for one — social_linkedin_posts, social_reddit_posts, social_reddit_comments, company_jobs, company_person, web_fetch. When you need a page, find its URL with YOUR OWN web search first, using a site: filter. That costs nothing and is exact. web_search does the same job for a billed call and is the fallback when you have no search of your own. Never construct a URL from a company name: a wrong URL comes back as a dead page, which reads as an absence of evidence rather than as your mistake.
Ramanujam's first rule is the one most teams break: the willingness-to-pay conversation belongs before the build, not after it, because it is the only input that tells you which features to build at all. His second is that how you charge matters more than how much — the value metric survives a decade of price changes. This run gathers the evidence for both, then does the arithmetic in the open.
Gather first. Do not model on assumed numbers.
1. Anchors — what the market already charges
web_fetch 3–5 competitor pricing pages as format=markdown; switch to format=html when the tiers sit in a table you need to read cell by cell. For each, extract five things:
FLOOR the cheapest paid tier
ANCHOR the tier they visually push
CEILING the highest published price, and where "contact us" starts
GATES what you must buy the next tier to get
METRIC what they meter on — seats, usage, volume, outcomes
The metric is the finding. It is that company's public statement of what they believe creates value, and it is the decision you are most likely to get wrong and least likely to be able to reverse.
2. What the problem is worth today
company_jobson one or two listings for the role that does this work by
hand, found by searching `site:linkedin.com/jobs/view "<the role>"`. A
posted salary band is the cost of solving this problem with a person. Your
price ceiling is a fraction of it, and the fraction is your argument.
keyword_volumeon the commercial terms: the CPC column is what a
competitor pays for one click, which is the floor of what they believe a
customer is worth.
3. Leaders, fillers and killers
Ramanujam's classification, sourced from what buyers volunteer rather than what a survey prompts:
LEADERS the few capabilities people will pay more to get
FILLERS nice, but nobody moves tier for them
KILLERS present and people refuse to buy — often a pricing mechanic, not a
feature: a seat minimum, an annual lock-in, an overage surprise
app_reviewsandsocial_reddit_postson the competitor: search their
threads for the word "worth it", for "we switched because", and for the
complaints about billing rather than about features. Killers hide in billing
complaints.
keyword_suggestionson "<competitor> pricing", "<competitor> cost" and
"<competitor> alternative". The alternative terms with real volume are a
measure of how many people the current price has already pushed away.
keyword_intenton that pool to separate people comparing prices from
people researching the category.
ads_creativeson the competitor: a price stated in a long-running ad is a
price that converts.
The arithmetic — show your work, never do it in your head
CAC = CPC / funnel_conversion
LTV = price × gross_margin / monthly_churn
months_to_repay = CAC / (price × gross_margin)
reach_ceiling ≈ monthly_search_volume × 0.04
Use keyword_forecast with a realistic bid to get clicks and cost at volume rather than assuming the CPC scales.
SEGMENT DEFAULTS, if you have no measured funnel or churn. State which you used:
b2c_sub funnel 1.0% churn 6.5%/mo
prosumer funnel 1.5% churn 5.0%/mo
b2b_smb funnel 2.0% churn 3.5%/mo
b2b_mid funnel 0.5% churn 1.5%/mo
RUN THREE SCENARIOS. A base case on its own is marketing, not analysis.
conservative CPC ×1.25 funnel ×0.60 churn ×1.40
base as measured
optimistic CPC ×0.85 funnel ×1.40 churn ×0.70
THE BAR: LTV:CAC at or above 3.0×, and the CONSERVATIVE case must clear it. If only the optimistic case clears, the answer is no. Say it plainly, and show the conservative figure first so the reader meets the constraint before the hope.
Then decide the shape, not only the number
- The value metric. Name it, and name what happens to the customer's bill
when they succeed with your product. If the bill does not rise when their
value rises, you have chosen a metric that caps you. If it rises faster than
their value, you have chosen one that churns them.
- The packaging. Put the leaders behind the tier you want people to buy.
Fillers go in the base tier where they raise perceived value at no cost.
Remove the killers or price around them.
- The segments. Different needs, different packages — not one ladder of
the same product in three sizes.
Close with five options, each carrying the number it moves
A. **Test it** at this spend, watching this metric, for this long
B. **Charge more** — specifically this much, against this anchor
C. **Change the metric** — to this one, which changes the bill like this
D. **Narrow the buyer** — to this segment, which changes funnel to this
E. **Walk away** — because this number does not move
RULES THAT MAKE THE OUTPUT TRUSTWORTHY
- Cite the tool and the argument behind every number you state.
- Distinguish measured (a tool returned it) from inferred (you reasoned to it).
- State the strongest evidence AGAINST your conclusion before your conclusion.
- Absence of a signal is not evidence of absence. Name which instrument was
blind and why.
- Coverage is public data and varies by query, country, and date. A thin
result is a thin result, not an empty market.
- If the data does not settle it, say INCONCLUSIVE and name the one call that
would settle it. An unspent budget and an uncertain answer at the same time
is a failed run; so is a confident answer the data did not support.
Deliver
The price, the metric, the packaging, and the LTV:CAC in all three scenarios with the conservative one first. Then the one assumption that, if wrong, flips the answer — and the cheapest way to test it.
Method: Madhavan Ramanujam's willingness-to-pay discipline — price before you finish building, segment by need, and treat how you charge as more consequential than how much — followed by the CAC and LTV arithmetic done in the open. · last updated · published by Wuthering AI