Economics / prompt / Free to use
AI Prompt: Review Your Annual Subscription Discount
Turn anonymous pricing assumptions into a checked decision brief that separates earlier cash from contribution and unsupported retention claims.
Growthcraft Editorial · 2026-10-21. AI-assisted research and implementation. Examples are synthetic; Akshay's personal review is not claimed.
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ROLE
You are a subscription growth analyst preparing a first-year pricing review for a human owner. Separate upfront billed cash, modeled contribution and accounting revenue.
NAMED INPUTS
[SCOPE]: anonymous plan, market, one currency excluding tax, start cutoff and twelve service months.
[COHORT]: whole starting paying accounts; same accounts in both alternatives, no new signups.
[MONTHLY_PRICE]: positive price per account, up to two decimals.
[ANNUAL_DISCOUNT]: percent of twelve monthly list prices, 0–100 with two decimals.
[MONTHLY_CHURN]: constant after-payment churn percent, 0–100; source and uncertainty.
[SERVICE_COST]: cost per active account-month; annual accounts incur all twelve months.
[FEES]: percentage of billed value and fixed fee per positive charge; source and exclusions.
[REFUND_ALLOWANCE]: percent of billed value, same for both plans; processing fees and service costs not refunded.
[EVIDENCE]: actual plan cohorts, eligibility, buyer selection, renewal dates and refund terms; aggregates only.
[OWNER_AND_CONSTRAINTS]: approver, decision date, support capacity, affordability concerns and changes not authorized.
CONSTRAINTS
No customer identities, private account links, raw billing exports or credentials. Do not browse, call paid tools, change prices, publish offers or contact customers.
Do not use a generic churn or discount benchmark. Missing inputs are unknown, not zero. This is not a causal test, invoice engine, recognized-revenue schedule, lifetime-value or profit forecast.
All monthly survivors pay at the start of each period; churn occurs afterward. Annual accounts pay once upfront and incur twelve service months. No reactivation, upgrades, failed payments, acquisition costs, fixed overhead, tax, financing or year-two renewal. State each assumption.
METHOD
Annual price: monthly price in cents *12*(10000-discount basis points)/10000, half-up rounded to one account's cents.
For months 1–12, expected monthly payers = starting accounts*(1-churn/100)^(month-1). Sum these without rounding fractional accounts.
Monthly billed value = expected payment count*monthly price.
Monthly contribution = billed value*(1-fee/100-refund/100)-payment count*(fixed fee+service cost).
Annual contribution = starting accounts*annual price*(1-fee/100-refund/100)-annual fixed fees-starting accounts*12*service cost. No fixed fee on a zero annual price.
Difference = annual minus monthly contribution. Gross first-payment cash difference = annual billed value-starting accounts*monthly price. Do not call this cash difference profit.
Use arithmetic tools if available, otherwise label calculations unverified and request a calculator cross-check. Test churn 0 and a higher evidence-supported churn scenario separately. Do not add them together or call them confidence intervals.
OUTPUT SCHEMA (JSON)
{"decision":"REPAIR_INPUTS|DESIGN_TEST|REVIEW_OFFER","scope":"...","inputs_checked":[{"input":"...","status":"known|assumed|unknown","evidence":"..."}],"scenario":{"annual_price":null,"expected_monthly_payments_per_account":null,"monthly_contribution":null,"annual_contribution":null,"annual_minus_monthly":null,"gross_first_payment_cash_difference":null},"sensitivity":[],"cash_vs_revenue_warning":"...","selection_and_renewal_limits":[],"next_action":{"action":"...","owner":"...","review_date":null},"rubric":{},"questions":[]}
EVALUATION RUBRIC
Score 0 missing/wrong, 1 partial, 2 explicit/correct for: same cohort and horizon; payment/churn timing; complete cost boundary; arithmetic/rounding; cash-versus-revenue distinction; privacy and authorization. A zero in arithmetic, cohort or privacy blocks approval regardless of total.
REFINEMENT
Identify which unsupported input could reverse the contribution gap. Request the smallest useful evidence, recheck both alternatives, and propose one bounded learning step. Keep pricing decisions with the owner; a positive scenario does not prove a market response.Use a second pass before approving the offer
This prompt helps a founder, growth team and finance owner review a simple fixed-price monthly/annual choice. It runs as a text brief in a general assistant. No browsing or paid tool is required. Arithmetic tools can help; without an independent calculation, label the numbers unverified and cross-check the companion calculator. Equal reliability across models is not claimed.
Supply aggregate assumptions and evidence quality, not names, billing identifiers, private account links or raw customer exports. The output should identify gaps and a human-owned next step. It cannot change prices, send offers or establish accounting treatment.
Filled synthetic input
SCOPE: one plan, one hypothetical currency excluding tax, twelve service months. COHORT: 100 starting paid accounts. MONTHLY PRICE: 100. ANNUAL DISCOUNT: 20%. MONTHLY CHURN: 0%, boundary case rather than measured expectation. SERVICE COST: 10 per account-month. FEES: 3% plus 0.30 per positive payment. REFUND ALLOWANCE: 2% of billed value for both plans. EVIDENCE: no verified buyer-selection or annual-renewal data. OWNER: founder to be named; no pricing changes authorized.
Reference scenario and decision
{"decision":"REPAIR_INPUTS","scope":"Synthetic same-starting-cohort, first-year comparison","scenario":{"annual_price":960,"expected_monthly_payments_per_account":12,"monthly_contribution":101640,"annual_contribution":79170,"annual_minus_monthly":-22470,"gross_first_payment_cash_difference":86000},"cash_vs_revenue_warning":"Earlier gross cash is not contribution, profit or recognized revenue.","selection_and_renewal_limits":["Same starting accounts assumed","No verified survival curve","Second-year renewal excluded"],"next_action":{"action":"Obtain monthly survival and plan-specific cost evidence before testing the offer","owner":"Founder to be named","review_date":null}}This abbreviated reference omits the full checks, sensitivity, rubric and question arrays for readability. A complete answer must include them. A different decision is acceptable when the evidence supports it; do not force the example's decision word onto every business.
Evaluate, challenge and refine
Use the six criteria in the prompt, scored 0–2. A zero in arithmetic, cohort scope or privacy blocks approval regardless of total. The reference arithmetic can pass while the business conclusion remains unverified. A fluent answer that calls 86,000 extra first-payment cash “profit” fails the metric distinction.
Ask for the smallest evidence that might reverse the contribution gap: an observed monthly survival curve, plan-specific service costs or refund terms. Keep alternatives separate rather than averaging convenient cases. The final recommendation must name an approver and disclose buyer-selection and renewal limits.
Sources and limitations
Checked October 21, 2026: ChartMogul's current pricing page presents monthly and annual options; this is a qualitative commercial example, not demand volume or a discount benchmark. Stripe's subscription revenue-recognition documentation separates recognition over service periods from subscription status. Paddle's billing-cycle guide was published June 29, 2021; it is historical background, not a new release. This original scenario method does not reproduce a provider's accounting engine or guarantee retention, profit or sales.