Explore what happens when pricing decisions change
Sarah had three options on the table. Let's explore what happens with each pricing strategy—before you learn the exact formulas.
Your job: Look at each scenario and predict which one meets the pricing scoreboard (profitable, competitive, defensible).
Revenue per project (avg)
$2,500 (50 hrs × $50)
Monthly Costs
$3,200 (rent, software, etc.)
Alex's Salary
$4,000/month
Sarah's Pay
$0 (none left)
Result: Lose $4,700/month
Revenue per project (avg)
$3,750 (50 hrs × $75)
Monthly Costs
$3,200 (rent, software, etc.)
Alex's Salary
$4,000/month
Sarah's Pay
$0 (none left)
Result: Lose $3,450/month
Revenue per project (avg)
$5,000 (50 hrs × $100)
Monthly Costs
$3,200 (rent, software, etc.)
Alex's Salary
$4,000/month
Sarah's Pay
$3,000/month
Result: Profit +$5,200/month
What Just Happened?
You just did what Sarah had to figure out: look at pricing scenarios and predict which ones work. Notice how:
- The lowest price wasn't the most competitive—it was the least sustainable
- Revenue alone doesn't determine profit—costs matter just as much
- Premium pricing can actually be defensible—when you can explain the value
In the next lessons, you'll learn the exact formulas to calculate these numbers automatically. But the intuition you're building now—the ability to look at a price and sense whether it will work—that's what separates good pricing from bad pricing.