Pricing Logic v1 (Execution Step 2)¶
Objective¶
Translate product value into a pricing model that scales with customer risk exposure, governance needs, and operational complexity.
Positioning anchor: - Deterministic release decisions + evidence-backed governance + reduced triage overhead.
Pricing principles¶
- Price by measurable business value, not command count.
- Keep entry friction low for bottom-up adoption.
- Make enterprise governance value explicit and premium.
- Preserve a strong OSS core to accelerate credibility and trust.
- Align monetization with customer maturity journey.
Package architecture¶
Tier 0 — OSS Core (Free)¶
Intended buyer/user¶
- Individual devs, small teams, exploratory adopters.
Included value¶
- Canonical gate path support.
- Basic artifact generation and interpretation patterns.
- Community docs and community support paths.
Business role¶
- Top-of-funnel engine.
- Standardized language for release-confidence category creation.
Conversion trigger to paid¶
- Need for multi-repo governance.
- Need for deeper reporting/automation.
- Need for policy/compliance guardrails.
Tier 1 — Team / Pro¶
Intended buyer/user¶
- Engineering managers, QA leads, platform team leads.
Value scope¶
- Team-level governance overlays.
- Enhanced reporting and trend views.
- Better workflow templates and operational guardrails.
- Faster issue-to-remediation loops.
Packaging candidates¶
- Policy profile templates.
- Artifact rollup packs.
- Team SLA support (business hours).
Pricing unit options (evaluate)¶
- Per active repository (recommended for simplicity).
- Per engineering seat (secondary option).
- Hybrid base + repo blocks (good for mid-market).
Recommendation¶
- Start with per-repository pricing for clearer value mapping.
Tier 2 — Enterprise¶
Intended buyer/user¶
- VP Engineering, Head of Platform, Release Governance leaders.
Value scope¶
- Portfolio-level release confidence rollups.
- Governance and audit-grade evidence workflows.
- Enterprise reliability routines and escalation management.
- Advanced support, onboarding, and change enablement.
Packaging candidates¶
- Portfolio dashboards.
- Policy packs by regulatory posture.
- Executive reliability scorecards.
- Premium support + architecture advisory.
Pricing unit options¶
- Annual platform license with repo bands.
- Add-on for regulated/compliance bundle.
- Premium support and onboarding add-on.
Recommendation¶
- Use annual contract with tiered repo bands + support package.
Candidate pricing structure (illustrative)¶
Note: Numerical values below are placeholders for model testing and should be validated in customer conversations.
Team / Pro (monthly)¶
- Band A: 1-10 repos
- Band B: 11-30 repos
- Band C: 31-75 repos
- Band D: 76+ repos
Enterprise (annual)¶
- Base platform fee + repo band multiplier
- Optional add-ons:
- Compliance evidence bundle
- White-glove onboarding
- Premium support SLA
Value metric selection framework¶
Evaluate each metric against: 1. Customer-perceived fairness 2. Predictability for buyer budgeting 3. Expansion alignment 4. Sales simplicity 5. Instrumentation ease
Score each 1-5.
| Metric | Fairness | Predictability | Expansion fit | Sales simplicity | Instrumentation | Total |
|---|---|---|---|---|---|---|
| Active repositories | 5 | 5 | 5 | 4 | 5 | 24 |
| Engineering seats | 3 | 4 | 3 | 4 | 3 | 17 |
| Pipeline runs | 2 | 2 | 3 | 2 | 4 | 13 |
| Hybrid (base + repos) | 4 | 4 | 5 | 3 | 4 | 20 |
Recommendation: start with active repositories.
Monetization journey map¶
Stage 1: Land¶
- User installs and runs canonical first proof.
- Sees deterministic ship/no-ship output and useful artifacts.
Stage 2: Validate¶
- Team deploys in one repo/pipeline.
- Measures triage and confidence improvements.
Stage 3: Expand¶
- Standardize across additional repos.
- Introduce governance and policy controls.
Stage 4: Institutionalize¶
- Portfolio reporting and executive dashboards.
- Formal reliability and compliance cadence.
Conversion trigger matrix¶
| Trigger | Signal | Sales action |
|---|---|---|
| Repeated NO-SHIP runs | High release friction and remediation urgency | Offer Team pilot with remediation coaching |
| Governance audit pain | Evidence demands increasing | Position enterprise evidence bundle |
| CI inconsistency across repos | Fragmented release decisions | Position multi-repo standardization plan |
| High triage latency | Slow issue ownership and diagnosis | Position artifact-led triage workflows |
Packaging by persona¶
Persona: Platform lead¶
- Concern: consistency and scale.
- Offer: multi-repo governance + rollups.
Persona: QA/SDET lead¶
- Concern: confidence and reproducibility.
- Offer: deterministic gates + quality evidence workflows.
Persona: Engineering manager¶
- Concern: release velocity and predictability.
- Offer: team-level decision consistency + lower triage time.
Persona: Compliance/security stakeholder¶
- Concern: auditable decision trace.
- Offer: contract-driven evidence artifacts and retention policies.
Commercial motion by segment¶
SMB / small-mid teams¶
- Motion: self-serve + assisted onboarding.
- Sales cycle: short.
- Pricing: simple monthly repo bands.
Mid-market¶
- Motion: founder-led + solutions support.
- Sales cycle: medium.
- Pricing: annual with expansion checkpoints.
Enterprise¶
- Motion: consultative + pilot + procurement.
- Sales cycle: long.
- Pricing: annual platform with governance add-ons.
Discounting guardrails¶
- No discount without explicit success plan.
- Tie discount to term length and scope commitment.
- Avoid deep discounts that anchor low willingness to pay.
- Prefer value-add credits over pure price reductions.
Pilot pricing logic¶
Pilot objective: - Prove measurable value quickly and de-risk larger commitment.
Pilot design options: 1. Paid pilot with credit toward annual. 2. Low-cost fixed-scope pilot (2-4 weeks). 3. Sponsored design partner motion (strict criteria only).
Pilot success metrics: - Reduced triage time. - Improved release decision consistency. - Improved governance evidence quality.
Expansion playbook¶
Post-pilot expansion triggers: 1. Positive KPI movement in first 30 days. 2. Champion requests broader rollout. 3. Leadership asks for portfolio-level visibility.
Expansion sequencing: - Repo 1-3 standardization. - Repo 4-15 process normalization. - Repo 16+ governance and portfolio control loops.
Renewal logic¶
Renewals should be framed around: 1. Reliability delta delivered. 2. Risk reduction outcomes. 3. Organizational standardization progress. 4. Governance maturity and audit readiness.
Renewal package: - Outcome report - Year-over-year KPI shifts - Next-phase roadmap
KPI model for pricing validation¶
Track these pricing-performance KPIs monthly: 1. Free-to-paid conversion rate. 2. Time from first proof to paid pilot. 3. Pilot-to-paid conversion rate. 4. Net revenue retention by segment. 5. Expansion ARR from repo growth.
Objection handling library (pricing)¶
“We can script this ourselves.”¶
Response: - DIY scripts handle command execution, but not stable decision contracts, governance narrative, and reusable evidence models.
“We already have CI checks.”¶
Response: - Existing checks are often fragmented; SDETKit standardizes decision interpretation and evidence portability.
“Budget is tight.”¶
Response: - Start with narrow pilot tied to triage-time and release-risk reduction targets.
“We only need this for one repo.”¶
Response: - Begin with one repo; pricing and rollout are designed for staged expansion.
Pricing experiments backlog (first 90 days)¶
Experiment 1: - Compare repo-based vs hybrid pricing proposal acceptance.
Experiment 2: - Compare paid pilot vs low-cost pilot conversion quality.
Experiment 3: - Compare annual prepay incentive vs onboarding-credit incentive.
Experiment 4: - Test support SLA add-on demand in enterprise pilots.
Governance and ownership¶
- Owner: Founder / Head of Revenue.
- Inputs: Product, Solutions Engineering, Customer Success.
- Review cadence: bi-weekly pricing council.
Decision log template¶
For every deal, log: - Segment - Package offered - Discount details - Objections - Win/loss outcome - Guides for model revision
Price change policy¶
- Batch pricing updates quarterly.
- Preserve grandfathering rules for active annual customers.
- Communicate value improvements before price increases.
- Provide migration paths for legacy plans.
Done criteria for Pricing v1¶
Pricing v1 is considered ready when: 1. Package architecture is approved. 2. Value metric is selected and instrumented. 3. Pilot terms are standardized. 4. Objection library and discount guardrails are adopted by sales.