01 · Explanation
Offer, pricing, and unit economics
Objective: Construct an offer and price hypothesis that reflects customer value, delivery reality, and a transparent preliminary margin model.
An offer combines a defined result, scope, conditions, price, and credible reason to believe. State what the customer receives, what is excluded, how delivery works, and what the customer must contribute. Compare direct competitors, substitutes, internal workarounds, and doing nothing. Their prices are reference points, not instructions. Test the language and package with relevant buyers before assuming that a feature creates value. Avoid unsupported savings or performance claims. If a claim depends on future testing, label it as a hypothesis and identify the evidence required before it can appear in marketing or sales material.
Build unit economics from explicit inputs. For a product, include selling price, discounts, materials, conversion, packaging, freight, duties, payment fees, expected returns, warranty, and variable support. For a service, include delivery labor, contractor cost, tools, payment fees, rework, and other costs that change with the engagement. Calculate contribution dollars and contribution margin, then test low, base, and high cases for price, cost, volume, and returns. Do not present preliminary economics as audited financial information. Taxes, revenue recognition, accounting classification, and financing decisions require review by qualified accounting, tax, or financial professionals when applicable.
Before you begin
- Confirm F04’s provisional subscription and installation prices, F05’s confirmed 100-unit sensor quote, F06’s available cash, and F09’s confirmed substitute benchmark.
- Do not treat the 100-unit sensor quote as a confirmed 250-unit price or infer omitted cost categories.
- Set calculation units, scenario names, source dates, and confidence fields before comparing offers.

