$49/mo feels random value metrics, competitor analysis, testing? Churn reduction via pricing?
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Hey Michael, Value metric first: $/active users or “AI queries/mo”. Research: 3x competitor floor. Tiers: Free→Pro→Enterprise. Test: Annual 20% discount A/B. $29→$49 boosted MRR 40%, churn dropped 15%. Interview 10 customers: “Would you pay 2x?” Price to problem solved.
Formula: Cost + 3-5x margin → test up 20%. Metrics: LTV:CAC >3:1. Freemium if <30min onboarding. Playbook: Launch low, raise twice/yr post-value proof. Tools: ProfitWell experiments. Client $19→$79 tiers, 3x revenue same customers. Anchor high Enterprise tier pulls Pro up.