LoopyLuci Pricing
Core Principle
Charge something. Always. There is a massive difference between free and $1 — the "zero price effect." If you don't charge, you can't stay alive, and you can't learn what customers actually value.
Two Pricing Models
Cost-Based Pricing
- Calculate your costs (hosting, time, materials, payment processing)
- Add a margin (20-50% is typical)
- Best for: physical products, services with clear costs
Value-Based Pricing
- Price based on value to the customer, not your costs
- A feature might cost nothing to deliver but be worth a lot
- Best for: software, digital products, services with high perceived value
Pricing Principles
- Start low, raise over time. Prices go up as products improve.
- Pricing is not permanent. Iterate on it like everything else.
- Tiered pricing is the goal. Economy, business, first class.
- Never give it away for free as default. Even $1 creates a different dynamic.
- Free trials are table stakes. Always with a clear path to paid.
Code Example: Pricing Math
Product: $10/month subscription
Need: $2,000/month to sustain
Customers needed: 200
At 1 new customer per business day: ~10 months
Break-even from customer #1: ✅ (profitable immediately)
Common Pitfalls
| Pitfall | Solution |
|---|---|
| Giving product away for free | Charge something — zero price effect is real |
| Setting price once and never revisiting | Pricing is iterative, not permanent |
| Confusing free trials with free products | Trials must have clear path to paid |
| Underpricing due to insecurity | Price based on value to customer, not your costs |
| Not planning tiered pricing | Introduce tiers as you understand segments |
Verification Checklist
- Pricing model chosen (cost-based, value-based, or hybrid)
- Initial price point set with rationale
- Future tier structure planned
- Number of customers needed for sustainability calculated
- Schedule for revisiting/raising prices established