From 81a11fed912acda07017285ecc0cd0197f3423fd Mon Sep 17 00:00:00 2001 From: Ty Date: Sun, 2 Aug 2026 21:17:57 +0000 Subject: [PATCH] Add Economics & Pricing Execution Guide v1 (Layer 3 executable method) --- .../economics-pricing-execution-guide-v1.md | 96 +++++++++++++++++++ 1 file changed, 96 insertions(+) create mode 100644 docs/architecture/economics-pricing-execution-guide-v1.md diff --git a/docs/architecture/economics-pricing-execution-guide-v1.md b/docs/architecture/economics-pricing-execution-guide-v1.md new file mode 100644 index 0000000..7e942e2 --- /dev/null +++ b/docs/architecture/economics-pricing-execution-guide-v1.md @@ -0,0 +1,96 @@ +# Economics & Pricing Execution Guide v1 + +## 1. Purpose & Non-Negotiables + +This guide makes Layer 3 (Economics & Pricing Validation) of the Path to PoC fully executable. + +It exists to force real owner-provided numbers into the economic model and pricing bands before any retainer conversation occurs. + +**Non-negotiables (from Charter):** +- No invented client numbers. +- Every figure must be tagged Tier 1 (Verified) or Tier 2 (Indicative). +- Agents may draft the capture sheet and summary; a human must approve and lock the final numbers. +- If the owner declines to share key financial data, the layer closes as speculative (Tier 2 only) and all downstream work is flagged accordingly. +- The three pricing bands must remain within what the owner has indicated they are willing to pay. + +## 2. Required Data Fields + +Capture the following from the client owner. Mark every field as provided or declined. + +| Field | Description | Required for Tier 1 | +|-------|-------------|---------------------| +| Monthly Revenue (or quarterly average) | Top-line revenue for the business | Yes | +| Monthly Ad / Marketing Spend | Total paid spend across all channels | Preferred | +| Estimated monthly cost of the top 1–3 threats | Owner’s own estimate of lost revenue or wasted spend caused by each verified threat | Yes (for each major threat) | +| Willingness-to-Pay (WTP) range – Band A | What they would pay monthly for detection-only (agent drafts alerts, human reviews) | Yes | +| WTP range – Band B | Detection + drafted response (agent drafts the reply, human approves before sending) | Yes | +| WTP range – Band C | Full escalation (detect + draft + next-action recommendation) | Yes | +| Business operating days / hours | Used later for workflow cadence realism | Preferred | +| Notes / context | Any qualitative comments the owner makes about value or constraints | Optional | + +All numbers must come from the owner. Scraped or estimated figures are not allowed as Tier 1. + +## 3. Conversation / Capture Structure + +Keep the conversation short and practical (15–25 minutes). + +**Suggested flow:** + +1. Confirm the top threats from the locked Threat Register (Layer 2). +2. Ask: “Roughly how much do you think each of these is costing you per month in lost bookings or wasted spend?” +3. Ask for current monthly revenue (or a comfortable range). +4. Ask for current monthly marketing spend if they track it. +5. Present the three service levels in plain language and ask what monthly range feels reasonable for each: + - Band A: We watch and alert you when something is broken or missing. + - Band B: We watch, alert you, and draft the fix or reply for your approval. + - Band C: We watch, alert, draft, and recommend the next concrete action. +6. Record exact words and ranges. Do not push for a single number. +7. Confirm understanding: “I’m going to document these as provisional ranges. Nothing is locked until you review the summary.” + +Use a simple capture sheet (markdown or form) that mirrors the table above. + +## 4. Converting Answers into Pricing Bands + +- Record the owner’s stated range for each band exactly. +- Do not average, inflate, or “optimize” the numbers. +- If the owner gives a single number, record it as a range of ±10–15% and mark it Tier 2 until confirmed. +- If the owner gives no number for a band, leave that band blank and mark the entire pricing model Tier 2. +- Cross-check: The highest band the owner is willing to pay must still clear a realistic early-stage delivery cost floor (to be refined after the first real engagement). Until real delivery cost data exists, flag any band that appears extremely low as “requires cost validation.” + +## 5. Tier 1 vs Tier 2 Rules + +- **Tier 1 (Verified):** Owner stated the number or range in the conversation and later confirmed the written summary. +- **Tier 2 (Indicative):** Owner gave a rough gut-feel number, declined to be precise, or has not yet confirmed the written summary. +- Any field left blank or explicitly declined → entire economics package for that client is treated as Tier 2 and the risk is noted in the Layer 3 exit checklist. + +## 6. Hard-Stop / Fallback Rule + +If the owner declines to share revenue or any WTP ranges: + +- Close Layer 3 with a single statement: “Owner declined to share economics data. All pricing bands and downstream commercial discussions are Tier 2 speculative only.” +- Do not invent benchmark numbers. +- Proceed to later layers only with the explicit understanding that any retainer conversation will be provisional. +- Document the refusal in the client economics file. + +## 7. Artifact Structure & Repo Paths + +**Cross-client model (reusable):** +`docs/architecture/pricing-bands-v1.md` +Contains the definitions of Bands A/B/C and the rules in this guide. Updated only when the method itself changes. + +**Client-specific file:** +`docs/clients//economics-v1.md` +Contains the actual captured numbers, tiers, owner quotes, and the Layer 3 exit checklist for that client. + +## 8. Layer 3 Exit Criteria Checklist + +A human reviewer may lock Layer 3 only when all of the following are true: + +- [ ] Capture sheet completed (or explicit refusal documented) +- [ ] Every provided number is tagged Tier 1 or Tier 2 +- [ ] Three pricing bands are recorded as ranges (or explicitly left blank with reason) +- [ ] Owner has reviewed the written summary (or refusal is recorded) +- [ ] Client economics file exists at the correct path +- [ ] Any missing data is clearly flagged as blocking full commercial confidence + +Once the checklist is satisfied, Layer 3 is locked and work may proceed to Layer 4.