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Design products and pricing around validated willingness to pay, from Ramanujam & Tacke's "Monetizing Innovation".
Passed 19 of 22 test cases with the skill, and 14 of 22 without it.
and 3 more in the full report
6 fixed13 passed either way2 still failing1 broke
Tokens, turns and time describe resource use, not a dollar price.
One of 6 test cases the skill fixed. Same model, same prompt, with and without the skill.
A specialized reporting plugin has missed revenue goals for 6 consecutive quarters. The product team claims prospects just need more education, but market feedback shows zero traction. What monetization failure mode is this product experiencing and what action should executive management take?
| Checked | Without skill | With skill |
|---|---|---|
| Diagnoses the product as an undead product. | Missed | Passed |
| Recommends sunsetting or killing the product. | Passed | Passed |
The instructions your model reads when the skill loads.
A framework for designing the product around the price, distilled from Simon-Kucher partners Madhavan Ramanujam and Georg Tacke's Monetizing Innovation. Use it to validate willingness to pay before building, dodge the four monetization failures, segment customers by value, package features into tiers people actually want, choose the right monetization model, and price with behavioral science instead of gut feel.
Design the product around the price — have the willingness-to-pay talk early. 72% of new products miss their revenue targets, and the common root cause is treating price as an afterthought: build first, guess a number at launch. Price is a measure of how much customers value what you are building, which makes it the best early signal of whether to build it at all. Test willingness to pay at the concept stage and let it shape scope, segments, packaging, and the business case.
Goal: 10/10. Rate pricing and packaging decisions 0-10 against the principles below. Report the current score and the specific changes needed to reach 10/10.
Core concept: Have the willingness-to-pay talk while the product is still a concept — before specs freeze, before the business case is locked, before code is written. You are not setting the final price; you are measuring whether customers value the idea, how much, and which parts of it. Those answers shape what gets built and for whom.
Why it works: WTP data turns pricing from a launch-week guess into a design input. If customers will not pay enough to sustain the product, you learn it while change is cheap; if they will pay far more than assumed, you build the premium version instead of leaving money on the table. The business case stops being hockey-stick fiction and becomes a testable claim you maintain as a living document.
Key insights:
Applications:
| Context | Application | Example |
|---|---|---|
| New product concept | Run WTP interviews before specs freeze | 15 target-buyer interviews put the concept at $40-60/seat before the roadmap is set |
| Business case | Anchor revenue on tested WTP, not analogy | Model uses the interview WTP curve, not "1% of a $2B market" |
test cases passed, vs 14 / 22 without
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