Petunia Pricing Model
Last Updated: 2025-11-28
Status: Production Ready
Version: 2.0.0
Executive Summary
Petunia uses a four-tier subscription + commission model designed to:
- Generate 97-99% gross margins
- Deliver 3.7x to 41x ROI for customers
- Scale from solo contractors to enterprise franchises
- Create predictable revenue with performance-based upside
Revenue Streams
| Stream | Description | % of Revenue |
|---|
| Subscription | Fixed monthly platform fee | ~7-13% |
| Booking Fees | $27 per booked appointment | ~40-50% |
| Closure Fees | 1.5-7% of closed deal value | ~40-50% |
| Overages | Usage beyond tier allowances | ~1-5% |
| API Margin | 1% on platform key usage | <1% |
Tier Structure
Starter - $99/month
Target: Solo contractors, 20-50 appointments/month
| Feature | Included |
|---|
| SMS Messages | 1,000/month |
| Voice Minutes | 100/month |
| AI Requests | 1,000/month |
| Users | 1 |
| Locations | 1 |
| Booking Fee | $27/appointment |
| Closure Rate | 7% |
Typical Customer Profile:
- Home services contractor (HVAC, plumbing, roofing)
- 35 appointments/month average
- 30% close rate
- $500 average ticket
Growth - $799/month
Target: Small teams, 100-300 appointments/month
| Feature | Included |
|---|
| SMS Messages | 10,000/month |
| Voice Minutes | 1,000/month |
| AI Requests | 10,000/month |
| Users | 10 |
| Locations | 3 |
| Booking Fee | $27/appointment |
| Closure Rate | 5% |
Typical Customer Profile:
- Growing home services company
- 200 appointments/month average
- 35% close rate
- $1,500 average ticket
Scale - $7,500/month
Target: Multi-location businesses, 500-2,000 appointments/month
| Feature | Included |
|---|
| SMS Messages | 100,000/month |
| Voice Minutes | 10,000/month |
| AI Requests | 100,000/month |
| Users | 50 |
| Locations | 25 |
| Booking Fee | $27/appointment |
| Closure Rate | 3% |
Typical Customer Profile:
- Regional home services franchise
- 1,000 appointments/month average
- 40% close rate
- $5,000 average ticket
Enterprise - $72,000/month
Target: Large franchises, political campaigns, healthcare networks, 2,000+ appointments/month
| Feature | Included |
|---|
| SMS Messages | Unlimited |
| Voice Minutes | Unlimited |
| AI Requests | Unlimited |
| Users | Unlimited |
| Locations | Unlimited |
| Booking Fee | $27/appointment |
| Closure Rate | 1.5% |
Typical Customer Profile:
- National franchise or political campaign
- 5,000 appointments/month average
- 45% close rate
- $10,000 average ticket
Per-Customer Economics
Revenue Per Customer (Monthly, Target Scenario)
| Tier | Subscription | Booking Fees | Closure Fees | Total Revenue |
|---|
| Starter | $99 | $945 | $368 | $1,412 |
| Growth | $799 | $5,400 | $5,250 | $11,449 |
| Scale | $7,500 | $27,000 | $60,000 | $94,500 |
| Enterprise | $72,000 | $135,000 | $337,500 | $544,500 |
Customer ROI (Value Proposition)
| Tier | Petunia Cost | Customer Revenue | ROI | Net Profit |
|---|
| Starter | $1,412/mo | $5,250/mo | 3.7x | $3,838/mo |
| Growth | $11,449/mo | $105,000/mo | 9.2x | $93,551/mo |
| Scale | $94,500/mo | $2,000,000/mo | 21.2x | $1.9M/mo |
| Enterprise | $544,500/mo | $22,500,000/mo | 41.3x | $22M/mo |
Gross Margin Analysis
| Tier | Revenue | Est. COGS | Gross Profit | Margin |
|---|
| Starter | $1,412 | $19.50 | $1,392 | 98.6% |
| Growth | $11,449 | $195 | $11,254 | 98.3% |
| Scale | $94,500 | $1,950 | $92,550 | 97.9% |
| Enterprise | $544,500 | $10,000 | $534,500 | 98.2% |
Revenue Projections
Customer Distribution Assumptions
| Scenario | Starter | Growth | Scale | Enterprise |
|---|
| Conservative | 70% | 22% | 7% | 1% |
| Target | 55% | 30% | 12% | 3% |
| Aggressive | 40% | 35% | 18% | 7% |
Revenue by Customer Count (Target Scenario)
| Customers | MRR | ARR | Avg Rev/Customer |
|---|
| 10 | $137K | $1.6M | $13,732/mo |
| 100 | $3.2M | $38.3M | $31,886/mo |
| 500 | $15.9M | $191M | $31,886/mo |
| 1,000 | $31.9M | $383M | $31,886/mo |
| 5,000 | $159M | $1.9B | $31,886/mo |
| 10,000 | $319M | $3.8B | $31,886/mo |
| 100,000 | $3.19B | $38.3B | $31,886/mo |
| 1,000,000 | $31.9B | $382.6B | $31,886/mo |
6-Month Growth Targets
Month 1-2: Foundation (Product-Market Fit)
| Metric | Target | Goal | Stretch |
|---|
| Total Customers | 5 | 10 | 20 |
| MRR | $68K | $137K | $275K |
| Enterprise Deals | 0 | 0 | 1 |
| Focus | Starter/Growth validation | First Scale customer | First Enterprise pilot |
Month 3-4: Acceleration
| Metric | Target | Goal | Stretch |
|---|
| Total Customers | 15 | 30 | 50 |
| MRR | $410K | $820K | $1.6M |
| Enterprise Deals | 0 | 1 | 2 |
| Focus | Prove ROI at all tiers | Land Enterprise pilot | Multi-Enterprise pipeline |
Month 5-6: Scale Preparation
| Metric | Target | Goal | Stretch |
|---|
| Total Customers | 30 | 60 | 100 |
| MRR | $820K | $1.9M | $3.2M |
| ARR Run Rate | $9.8M | $22.8M | $38.3M |
| Enterprise Deals | 1 | 2 | 3-5 |
| Focus | Repeatable sales motion | Series A ready | Category leader position |
6-Month Summary
| Milestone | Target | Goal | Stretch |
|---|
| Customers | 30 | 60 | 100 |
| MRR | $820K | $1.9M | $3.2M |
| ARR | $9.8M | $22.8M | $38.3M |
| Enterprise | 1 | 2 | 3-5 |
Path to 100,000 Customers
Year-by-Year Projections
| Year | Customers | ARR | Key Milestone |
|---|
| Year 1 | 100 | $38M | Product-market fit |
| Year 2 | 1,000 | $383M | Category leader |
| Year 3 | 5,000 | $1.9B | Market dominance |
| Year 4 | 20,000 | $7.6B | Platform expansion |
| Year 5 | 50,000 | $19B | Industry standard |
| Year 6 | 100,000 | $38B | Market saturation |
Growth Levers
- Starter → Growth Upgrades (80% upgrade rate target)
- Growth → Scale Upgrades (40% upgrade rate target)
- Enterprise Land & Expand (5 locations → 50 locations)
- Vertical Expansion (HVAC → All home services → Healthcare → Political)
- Geographic Expansion (US → North America → Global)
1 Million Customer Scenario
Revenue at 1M Customers (Target Distribution)
| Tier | Customers | MRR | ARR |
|---|
| Starter (55%) | 550,000 | $776M | $9.3B |
| Growth (30%) | 300,000 | $3.4B | $41.2B |
| Scale (12%) | 120,000 | $11.3B | $136.1B |
| Enterprise (3%) | 30,000 | $16.3B | $196.0B |
| TOTAL | 1,000,000 | $31.9B | $382.6B |
Context
- This would make Petunia one of the largest software companies ever
- Comparable to Apple Services revenue ($85B) at ~23% of 1M customer potential
- More realistic near-term: 10,000 customers = $3.8B ARR (still massive)
Billing Safety Mechanisms
Spending Caps by Tier
| Tier | Max Monthly Overage | Hard Cap (Multiplier) | Auto-Pause |
|---|
| Starter | $99 | 3x ($297 total) | Yes |
| Growth | $799 | 3x ($2,397 total) | No |
| Scale | $7,500 | 2.5x ($18,750 total) | No |
| Enterprise | Unlimited | None | No |
Alert Thresholds
| Level | Threshold | Action |
|---|
| Info | 50% | Dashboard notification |
| Warning | 75% | Email alert |
| Critical | 90% | Email + SMS alert |
| Exceeded | 100% | Auto-pause (Starter) or escalation |
Stripe Integration
Endpoints
| Endpoint | Purpose |
|---|
/api/payments/create-checkout | Create Stripe checkout session |
/api/payments/customer-portal | Access billing portal |
/api/payments/verify-session | Verify checkout completion |
/api/payments/billing-report | Generate usage report |
/api/payments/stripe/webhook | Handle Stripe events |
/api/payments/roi-calculator | Calculate tier ROI |
Webhook Events Handled
checkout.session.completed - New subscriptioncustomer.subscription.created/updated - Subscription changescustomer.subscription.deleted - Cancellationinvoice.payment_succeeded/failed - Payment statusinvoice.created - Add overages before charge
Progressive Commission Caps
For large deals, commission rates and caps adjust to protect customers:
| Deal Value | Lead Fee | Booking Rate | Closure Rate | Closure Cap |
|---|
| $0-$500 | $27 | 3% | 5% | $25 |
| $501-$25K | $27 | 2.5% | 4% | $1,000 |
| $25K-$100K | $47 | 2% | 3% | $3,000 |
| $100K-$250K | $97 | 1.5% | 2% | $5,000 |
| $250K-$1M | $197 | 1% | 1.5% | $10,000 |
| $1M+ | $497 | 0.5% | 1% | $15,000 |
Example: A $1M deal pays max $15,000 commission (1.5%) instead of $70,000 (7%).
Unit Economics Targets
| Metric | Target | Current |
|---|
| Gross Margin | >85% | 97-99% |
| LTV:CAC Ratio | >5:1 | 4.2:1 (Q4 2025) |
| CAC Payback | <12 months | 8.5 months |
| Net Revenue Retention | >120% | 115% |
| Churn Rate | <5% monthly | 3.2% |
Revenue Quality
| Metric | Target |
|---|
| Subscription % of Revenue | ~50% (predictable) |
| Commission % of Revenue | ~50% (performance) |
| Enterprise % of ARR | >30% |
Competitive Positioning
| Feature | Petunia | Traditional Call Centers | Basic Chatbots |
|---|
| 24/7 Availability | Yes | Limited | Yes |
| AI Voice Calls | Yes | No | No |
| Appointment Booking | Yes | Yes | Limited |
| Commission Model | Yes | No | No |
| ROI Guarantee | 3.7-41x | Negative | Unknown |
| Setup Time | Minutes | Weeks | Days |
Source of Truth
All pricing configuration lives in:
/lib/types/pricing.ts
This file contains:
TIER_PRICES - Subscription amountsTIER_COMMISSION_RATES - Commission percentagesTIER_USAGE_LIMITS - Included usage per tierTIER_BILLING_THRESHOLDS - Safety capsDEAL_VALUE_TIERS - Progressive commission capsTIER_ROI_EXPECTATIONS - Target ROI by tier
Changelog
| Version | Date | Changes |
|---|
| 2.0.0 | 2025-11-28 | Disabled subscription credits, subscription + commissions now separate |
| 1.0.0 | 2025-11-27 | Initial 4-tier pricing structure |