Luke Sophinos

It can be, but if you can map into that, you can build a really big business.

It can be, but if you can map into that, you can build a really big business.

Yeah. So pricing, I think, is the least thought about thing in software, which is crazy. It should probably be one of the most thought about things in software. My approach is pretty basic, but I think it works. So my approach is I understand how much does the thing cost that I'm solving, right?

Yeah. So pricing, I think, is the least thought about thing in software, which is crazy. It should probably be one of the most thought about things in software. My approach is pretty basic, but I think it works. So my approach is I understand how much does the thing cost that I'm solving, right?

Yeah. So pricing, I think, is the least thought about thing in software, which is crazy. It should probably be one of the most thought about things in software. My approach is pretty basic, but I think it works. So my approach is I understand how much does the thing cost that I'm solving, right?

And once I figure out how much the thing costs, I shouldn't say cost, how much are they paying for the thing that I'm solving today, right? And then I can look at actually coming up with some sort of pricing model. So let me go, I'll give you a concrete example. So we came up with a retention tool. We kept hearing from all of our end customers that student retention was a problem.

And once I figure out how much the thing costs, I shouldn't say cost, how much are they paying for the thing that I'm solving today, right? And then I can look at actually coming up with some sort of pricing model. So let me go, I'll give you a concrete example. So we came up with a retention tool. We kept hearing from all of our end customers that student retention was a problem.

And once I figure out how much the thing costs, I shouldn't say cost, how much are they paying for the thing that I'm solving today, right? And then I can look at actually coming up with some sort of pricing model. So let me go, I'll give you a concrete example. So we came up with a retention tool. We kept hearing from all of our end customers that student retention was a problem.

They had a bunch of students that were dropping out of their trucking school. And so we said, OK, we're going to build a tool that like analyzes all of their academic data and their attendance and and basically floats up a risk score that tells you which students are at risk in real time.

They had a bunch of students that were dropping out of their trucking school. And so we said, OK, we're going to build a tool that like analyzes all of their academic data and their attendance and and basically floats up a risk score that tells you which students are at risk in real time.

They had a bunch of students that were dropping out of their trucking school. And so we said, OK, we're going to build a tool that like analyzes all of their academic data and their attendance and and basically floats up a risk score that tells you which students are at risk in real time.

And then we're going to automatically text those students who are like trending in the wrong direction and try to motivate them via text, you know, with resources and ways to get back on track. right? So then we said, okay, well, how much is tuition for a school? Well, it's $20,000. All right. If we assume, well, what's the school's retention rate? Well, right now it's like 70%. Okay.

And then we're going to automatically text those students who are like trending in the wrong direction and try to motivate them via text, you know, with resources and ways to get back on track. right? So then we said, okay, well, how much is tuition for a school? Well, it's $20,000. All right. If we assume, well, what's the school's retention rate? Well, right now it's like 70%. Okay.

And then we're going to automatically text those students who are like trending in the wrong direction and try to motivate them via text, you know, with resources and ways to get back on track. right? So then we said, okay, well, how much is tuition for a school? Well, it's $20,000. All right. If we assume, well, what's the school's retention rate? Well, right now it's like 70%. Okay.

So what we found out was like, they were losing millions of millions of dollars every year on this problem. And so if we're able to build a solution that like saved five students, Right. Who are halfway through the program and they're each paying twenty thousand dollars to go to this program. That was serious.

So what we found out was like, they were losing millions of millions of dollars every year on this problem. And so if we're able to build a solution that like saved five students, Right. Who are halfway through the program and they're each paying twenty thousand dollars to go to this program. That was serious.

So what we found out was like, they were losing millions of millions of dollars every year on this problem. And so if we're able to build a solution that like saved five students, Right. Who are halfway through the program and they're each paying twenty thousand dollars to go to this program. That was serious.

And so now I'm able to price my product way high because I say I can, you know, look, we're forecasting that we're going to save you X amount of students. That translates to Y. And so this is what we're going to do for you. And then this is how much our product costs. Over time, I was able to look at all the customers that use this and say, hey, our average lift is three percent.

And so now I'm able to price my product way high because I say I can, you know, look, we're forecasting that we're going to save you X amount of students. That translates to Y. And so this is what we're going to do for you. And then this is how much our product costs. Over time, I was able to look at all the customers that use this and say, hey, our average lift is three percent.

And so now I'm able to price my product way high because I say I can, you know, look, we're forecasting that we're going to save you X amount of students. That translates to Y. And so this is what we're going to do for you. And then this is how much our product costs. Over time, I was able to look at all the customers that use this and say, hey, our average lift is three percent.