This article is bizarre. It considers the case where your CAC is $16, then considers whether you should charge $10/mo or $29/mo. And, uh, yeah, of course, if yo

This article is bizarre. It considers the case where your CAC is $16, then considers whether you should charge $10/mo or $29/mo. And, uh, yeah, of course, if you can raise prices without increasing your CAC/churn, you should obviously do that, but, in the real world, it’s harder to get customers to pay more, and that has to be reflected as higher CAC. Now, in fact, $10 is often too low, because the CAC of $29/mo isn’t usually that much higher than $10/mo, but it definitely is higher, and numbers like “$10/mo = $1,200/mo run rate, $29/mo = $1M/month run rate” should have forced the author to stop and reflect a little harder on whether these numbers make sense. Maybe we should charge $99/mo and make a BILLION dollars in the first year, right? Or, why stop there? At a fixed $16 CAC, why not charge $1,000/mo, $10K/mo? But that’s not how it works. That’s not how any of this works!