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Episode Description
Continuing the profitability conversation, Tim and Paul dig into a structural problem: many of their lower-tier packages get "scope creep" from a team that leans in to prevent churn, which quietly turns a profitable $3K package into a $5K cost to deliver.
The fix they land on is treating pricing tiers less like arbitrary price points and more like genuinely different products: a $3K package has to look meaningfully different from a $10K package in what it actually includes, with clear boundaries communicated upfront so the team isn't tempted to overdeliver for free.
They also borrow an idea from how attorneys bill, charging for extra work as it happens instead of eating the cost to avoid a client churning, and close with a well-known pricing principle: buyers tend to gravitate toward the middle-tier option, so how the tiers are framed matters as much as what's actually in them.