Oh no, I assume you do help! At least I have no reason to suspect you.
My objection is that the pricing strategy “you only pay if it takes you less than average time” sounds like a proof of something, when actually it’s not. That is, hypothetically, if you did nothing—which I don’t think is your actual plan—and only took money if the time is below the average… you would still be making money. Of course, if your help works, you make more money.
I am not accusing you of anything, but there are people out there who make money the way I described: promise to improve a probabilistic outcome, do nothing, collect money only in the lucky case. (One case I read about in newspapers, another one I heard rumors of.)
My point is: returning money if the result is not above average is not a guarantee of successful intervention. (Shminux said it’s because your sample is probably better than average. I said it works even for an average sample.) You asked to “critique this pricing model”, this is the kind of nitpicking you got. From the perspective of average customer, I suppose your pricing model sounds great.
I’d a love a little more detail here. What makes you think I’m not providing help?
Oh no, I assume you do help! At least I have no reason to suspect you.
My objection is that the pricing strategy “you only pay if it takes you less than average time” sounds like a proof of something, when actually it’s not. That is, hypothetically, if you did nothing—which I don’t think is your actual plan—and only took money if the time is below the average… you would still be making money. Of course, if your help works, you make more money.
I am not accusing you of anything, but there are people out there who make money the way I described: promise to improve a probabilistic outcome, do nothing, collect money only in the lucky case. (One case I read about in newspapers, another one I heard rumors of.)
My point is: returning money if the result is not above average is not a guarantee of successful intervention. (Shminux said it’s because your sample is probably better than average. I said it works even for an average sample.) You asked to “critique this pricing model”, this is the kind of nitpicking you got. From the perspective of average customer, I suppose your pricing model sounds great.
Got it—makes sense. I set up contingencies where the client can terminate the contract (and vice versa) to solve against this.
Not a perfect solution though.
Really appreciate the thoughts here! It’s helpful.