Pricing & Revenue Models
Impact Zero empowers underrepresented climate founders to turn their ideas into thriving, revenue-generating ventures. Through hands-on training, real-time feedback, and structured go-to-market frameworks, founders learn how to define real customer problems, validate solutions, and close sales. The goal is to build sustainable businesses that don’t just make impact—they make money too.
When to Worry About Pricing
First of all, if you haven’t already created a product, service, or offer that people seem interested in supporting - you probably have a larger go-to-market issue than just pricing. Before you talk about pricing you need to first validate that people want what you’re offering.
If you don’t have a repeatable product, service, or offer that you know without question that people want badly - you likely have a larger go-to-market/value proposition/sales messaging issue that pricing won’t solve alone. You’ll understand why that is by the end of this.
Why Most Startups Get Pricing Wrong
Founders are terrified of pricing: too high, and customers walk; too low, and you leave money on the table (or worse, devalue your solution). But here’s the kicker: your price is a signal. It tells customers what to expect. It defines how they perceive you. And it shapes the very trajectory of your company.
You need money to pay your team correctly for the time it takes to deliver value, refine your offering or tech, navigate regulations, then establish and scale operations. That means you can’t afford to guess your pricing. You need a strategy that works.
1. Start With Value, Not Costs
Forget cost-plus pricing (where you take your costs and add a margin). It’s a race to the bottom. Instead, ask: How much is this solution worth to my customer? If your product reduces a company’s carbon footprint and saves them $100,000 a year in fines or inefficiencies, you shouldn’t be charging $5,000. You should be charging $50,000. Maybe more.
✅ Action Step: Interview potential customers and ask, “Are there any financial consequences if you don’t solve this problem? How much?” Don’t guess—get real numbers.
2. Choose the Right Revenue Model
Your pricing structure matters as much as the number itself. The wrong model could kill your business. The right one could make it unstoppable.
Itemized Value Pricing → Price each possible product or solution based on it’s actual and perceived value, not the cost to deliver.
Subscription (SaaS model) → Best for software-driven solutions. Recurring revenue = stability.
Tiered Pricing → Great for offering different levels of service (e.g., basic, pro, enterprise). Gives customers choice.
Pay-for-Performance → If your solution guarantees cost savings or efficiency, charge based on outcomes. Aligns incentives.
One-Time Licensing or Purchase → Works for solutions with long lifespans.
✅ Action Step: Run a quick test. Offer two pricing models to different customer segments and see which converts better.
3. Build your Menu & Anchor High
Price out each element of your offering based on value, and for each line item description be very clear about the value/outcome that the customer will get by selecting that item. Each element can be used to mixed and matched with customers to build their most ideal quote, but you need to have a clear price for your ingredients first.
You can present a premium-priced option first (e.g. an offer with lots of ingredients!). Let customers self-select a lower tier or take pieces away.
✅ Action Step: Create an excel document that lists out your menu, you can create a copy of this spreadsheet for each customer you talk to, so they can create their most ideal package.
4. Gut Check Costs
If you’re focusing on value to the customer, it’s possible that you won’t cover your costs. So, to avoid that from happening it’s worth taking a look at how much time, materials, and other resources it will take to deliver that value to your customer just in case.
✅ Action Step: Look at your menu, and list out the hours it will take to deliver the value, any other admin (e.g. software, travel, marketing), and any other resources required during the sales or departure of that client (e.g. sales & marketing costs, equipment collection, etc.)
5. Raise Prices (Yes, Even Now)
The biggest pricing mistake? Not increasing your prices soon enough. Inflation is real. Value perception matters. And every year you wait to raise prices is a year you’re training customers to expect you to be cheap.
✅ Action Step: If you haven’t raised prices, do it now. Even a 10% increase on each menu item can be the difference between scraping by and thriving, depending on your offer.
6. Validate with Customers
Customers can help you fine-tune your pricing through sales conversations, so asking potential customers what they think about the pricing (and leaving space for them to answer) can yield some very helpful insights. If customers are saying yes too quickly, you might be under charging.
✅ Action Step: The next time you talk to a potential customer or lead, ask them if you can have a working session together to co-create a quote. In this meeting, show them your menu (citing the value as a result of adding something or the value lost as a result of removing something) and ask them which menu items might not be worth it so you can right-size their quote.
7. Value-Exchange Discounts Only!
If you’re seeing that customers are having a hard time with your pricing menu, you can offer discounts only if they agree to give you something valuable in return. For example, “I can give you 15% discount if you sign for 2 years, but pay later” or “I can give you a 15% discount if you agree to provide a testimonial and allow us to use your logo on our website”
If you’re having trouble getting to this stage, or navigating conversations with folks who may want to adopt or benefit from the climate solution you’re working on, take a look at joining our Go-to-Market Sprints program!