PricingEmerging Pattern

Validate that lower COGS translates to competitive advantage - market access costs often dominate

Q: How many founders have validated "validate that lower cogs translates to competitive advantage - market access costs often dominate"?

1 founder has proven this pattern works. Examples include Othman Laraki (Color).

In many industries, the cost of accessing the market (sales, billing, distribution) exceeds product costs. Being the low-cost producer doesn't help if you still face the same market access friction as expensive competitors.

When to use

When your thesis relies on technology reducing production costs to unlock a larger market or undercut incumbents

Don't do this

Assuming supply-and-demand economics apply - that lower price automatically means more customers or easier market access

1 Founder Who Did This

Colorby Othman Laraki

Built genetic test at 1/20th incumbent price but discovered sales and insurance billing costs exceeded any margin they could make

Result:Learned pricing was driven by market power and middlemen controlling access, not COGS - pivoted from testing business to solutions business

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