diff --git a/docs/business-model/economic-model.md b/docs/business-model/economic-model.md new file mode 100644 index 0000000..fffc76c --- /dev/null +++ b/docs/business-model/economic-model.md @@ -0,0 +1,75 @@ +# Economic Model + +**Status: Structural draft — pending real data** + +--- + +## Purpose + +This document connects the Value Creation Model, Client Lifecycle, and Go-to-Market Strategy into a unit-economics framework. + +It begins as a placeholder structure pending real client data and delivery-cost validation. **No number in this document is settled.** Every dollar figure, percentage, or ratio is explicitly marked as directional/unvalidated until replaced with real data. + +--- + +## Cost Side: Delivery Cost Floor + +Two distinct placeholders, not one: + +### Early-Stage Cost Floor (V1 hand-reviewed cohort) + +[PLACEHOLDER] — note that the prior estimate of ~$150-200/month predates Local Competitive Awareness becoming mandatory at every tier, and predates any real data on human-review time under the approval gate. Flag as needing recheck once the first proof-of-concept engagement completes. + +### At-Scale Cost Floor (post-graduation-threshold) + +[PLACEHOLDER] — explicitly a future-state projection for once specific task types clear the N≥100 zero-error graduation threshold. State clearly this is not a V1 number and must not be used for V1 pricing decisions. + +--- + +## Value Side: Recoverable Client LTV + +[PLACEHOLDER — AWAITING REAL CLIENT DATA] + +List as pending data points: + +- Average ticket per visit +- Average visit/repeat frequency +- Estimated client lifetime (months/years) +- Estimated average client LTV (derived from above) +- Monthly new clients +- Percentage of new clients attributing discovery to online search/AI vs. referral or other sources +- Inferable current booking leakage, if estimable + +--- + +## Pricing Bands + +### One-Shot Proof-of-Concept Audit + +[PLACEHOLDER] — note this is NOT to be derived from the monthly rate by fixed formula until real numbers exist. Prior directional assumption: roughly 2-3x the eventual monthly rate. Label explicitly as unvalidated. + +### Entry Tier (single-location) + +[PLACEHOLDER] — prior directional assumption ~$500/month. Must clear the early-stage cost floor and fall within the value ceiling once both are real. + +### Premium Tier (multi-location / faster SLA) + +[PLACEHOLDER] — prior directional assumption ~$1,000-1,500/month. + +--- + +## Value Ceiling Logic + +State that price should stay within a percentage-of-recoverable-LTV band, prior directional assumption 20-30%, explicitly marked as theoretical and unvalidated against any real client's numbers. + +--- + +## Open Dependencies + +List explicitly: + +1. Ashley/Phoenix's real client data (see Value Side above) has not yet been collected. + +2. The early-stage cost floor must be rechecked once Local Competitive Awareness overhead is accounted for. + +3. At least one completed proof-of-concept engagement is needed to sanity-check assumed delivery cost against actual time and effort spent. \ No newline at end of file