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Figure Figure 4 Go-to-market & pricing

Two ratios, read off your own billing data

One row per key account or segment, from data you already hold. The first ratio is the buyer’s property; the second is the seller’s test of whether the theorem’s world is still yours.

A four-column worksheet with five rows: account or segment, peak-to-average usage, marginal cost per unit of usage, and the run-cost of metering, for pricing a flat component against the tail rather than the average.ACCOUNT OR SEGMENTYour largest first.PEAK-TO-AVERAGE USAGEBusiest month over ownaverage: 600/500 vs 900/500 inthe experiment.MARGINAL COST PER UNITWhat one more unit of usagecosts you to serve.METERING RUN-COSTRating, billing and disputemachinery, per year.The first ratio is the one customer property shown to move the preference; the second decides whether absorbing thevariance is still nearly free. Price the flat component against the tail, not the average.
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Reference & Evidence

Source: Author's own worksheet.

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