Make bounded pricing decisions and see consequences
Now it's your turn to make pricing decisions for TechStart. You have some flexibility—choose a price per hour and a target number of clients.
Your goal: Hit Sarah's target pay of $3,000/month while keeping the business sustainable.
Fixed costs: $3,200/month
Alex's salary: $4,000/month
Sarah's target pay: $3,000/month
Profitable
✓ Makes money
Competitive
✓ Market range
Defensible
✓ Can explain
What You Just Did
You just made a real pricing decision and saw the immediate consequences. This is the core of strategic pricing—you're not just picking a number, you're choosing a business outcome.
Notice that there isn't just one "right" answer. Different prices can work if the whole system adds up. That's why we need formulas—to calculate precisely whether a price will actually work.
In the next lessons, you'll learn the exact formulas to calculate markup, margin, and break-even points. These tools will let you test any pricing scenario instantly.