Case Study: Reframing Pricing Strategy for a Pre-Revenue AI Startup

Background

At the time, I was leading the pricing story and go-to-market narrative for a pre-revenue startup building cutting-edge AI and computer-vision technology for retail supply-chain operations.

One of our first major prospects was a top-three U.S. grocery chain known for its affordability.

Landing this deal could have set the tone for our market entry and validated our pricing model.

Challenge

The retailer’s entire brand identity was built around low cost.

Our solution, on the other hand, was a premium product that solved problems no competitor could—like real-time shelf inventory visibility and increasing Buy Online Pick Up In-store (BOPIS) order accuracy.

We needed to communicate why a high-end AI platform was worth the investment for a brand that prides itself on savings.

Approach

1. Built the Pricing Story

   
   

   I used our internal pricing calculator and operational data to craft a narrative around out-of-stock loss prevention and revenue recapture. I developed the deck, messaging, and sales story to connect technical capabilities to business outcomes.

   
   

2. Quantified the Business Case

   
   

   I modeled the financial impact, showing millions in potential recovered revenue and positioning the solution as a 5x ROI in the first year.

   
   

3. Created Tiered Proposals

   
   

   I structured three pricing options—pilot, regional rollout, and enterprise—designed to lower adoption risk and demonstrate measurable ROI early.

   
   

4. Told the Story at the Executive Level

   
   

   In our presentation, we anchored the price to strategic outcomes like reduced waste, higher shelf accuracy, and stronger customer loyalty.

Outcome

Despite the value narrative and ROI modeling, the retailer declined.

Their response was simple—and unforgettable:

“We took your first offer as a serious one… and we won’t be moving forward.”

At first, it stung. But the post-mortem revealed the truth:

this account was never the right fit.

The company’s culture and cost-driven identity weren’t aligned with innovation spend. We had chased a logo that didn’t match our value proposition.

Results & Impact

That “no” forced me to go back to the drawing board on our Ideal Customer Profile. I asked: How did this account make it into our funnel to begin with?

From there, I:

• Redefined our ICP to focus on enterprise retailers that viewed innovation as a growth driver, not a cost center.

• Tightened qualification criteria around innovation budgets, digital maturity, and leadership buy-in.

• Increased sales efficiency and win rates by focusing only on customers who truly valued what we offered.

Key Learnings

• Pricing isn’t math—it’s messaging.

• Even perfect ROI logic can’t overcome cultural misalignment.

• “Too expensive” usually means “not the right customer.”

• The best pricing strategies start with clarity of fit, not just clarity of cost.

About the Author:

Cristin Padgett is a Product and Product Marketing Leader who specializes in bringing complex technology to market with clarity, precision, and measurable impact. With experience spanning AI, cybersecurity, and enterprise SaaS, she has built programs that blend product strategy with storytelling—shaping pricing models, go-to-market motions, and customer narratives that drive adoption and growth. Cristin is known for aligning cross-functional teams around a shared vision and transforming market insights into scalable, customer-centric solutions.

Cristin is available for full-time, fractional/contract, advisory, and consulting roles.

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