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# Pricing Profitability Analysis
## Cost: $0.17 USD per track

## Current Pricing Analysis

| Tier | Price/Month | Tracks | Price/Track | Cost/Track | Profit/Track | Profit Margin | Monthly Profit |
|------|-------------|--------|-------------|------------|--------------|---------------|----------------|
| Essential | $5 | 5 | $1.00 | $0.17 | $0.83 | **83%** | $4.15 |
| Starter | $15 | 20 | $0.75 | $0.17 | $0.58 | **77%** | $11.60 |
| Pro | $35 | 75 | $0.47 | $0.17 | $0.30 | **64%** | $22.50 |
| Premium | $75 | 200 | $0.375 | $0.17 | $0.205 | **55%** | $41.00 |
| Enterprise | $349 | 1000 | $0.349 | $0.17 | $0.179 | **51%** | $179.00 |

## ✅ All Tiers Are Profitable

All current pricing is above the $0.17/track cost threshold.

## ⚠️ Risk Assessment

### Enterprise Tier ($0.349/track) - UPDATED
- **Current margin**: 51%
- **Status**: ✅ Profitable with good safety margin
- **Updated**: Increased from $299 to $349 for better profitability

### Premium Tier ($0.375/track)
- **Current margin**: 55%
- **Status**: ✅ Good margin
- **Safe**: Yes

### Pro Tier ($0.47/track)
- **Current margin**: 64%
- **Status**: ✅ Excellent margin
- **Safe**: Yes

### Starter Tier ($0.75/track)
- **Current margin**: 77%
- **Status**: ✅ Excellent margin
- **Safe**: Yes

### Essential Tier ($1.00/track)
- **Current margin**: 83%
- **Status**: ✅ Excellent margin
- **Safe**: Yes

## 💡 Recommendations

### ✅ Current Pricing (UPDATED)
- All tiers profitable
- Enterprise at $349/month has 51% margin (good safety margin)
- Good competitive positioning
- All tiers above $0.17/track cost threshold

### Option 3: Adjust Premium Slightly
- Current $0.375/track is fine
- Could increase to $79/month ($0.395/track) for 57% margin
- But current pricing is competitive

## 📊 Revenue Projections (10 Enterprise Customers)

### Current Pricing ($349/month) - UPDATED:
- Monthly Revenue: $3,490
- Monthly Costs: $1,700 (1000 tracks × $0.17 × 10 customers)
- Monthly Profit: $1,790
- **Profit Margin**: 51%

## ✅ Recommendation

**✅ All tiers are profitable and safe:**
- Essential: 83% margin ✅ ($1.00/track vs $0.17 cost)
- Starter: 77% margin ✅ ($0.75/track vs $0.17 cost)
- Pro: 64% margin ✅ ($0.47/track vs $0.17 cost)
- Premium: 55% margin ✅ ($0.375/track vs $0.17 cost)
- Enterprise: 51% margin ✅ ($0.349/track vs $0.17 cost) - UPDATED

**All pricing is above the $0.17/track cost threshold with healthy margins.**