Definition
Capping is the limiting the maximum price or rate that can be charged for a service. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
In a Monday review, someone writes Capping on the board and restates it: “Limiting the maximum price or rate that can be charged for a service.” The next move is a test, a cut, or a double-down — not another debate about the word.
Common mistake
Using Capping as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Capitalization rate
Rate of return expected on a real estate investment based on income.
Read definition →
Capitalization table
Document showing ownership percentages of all shareholders in a company.
Read definition →
Carbon Credit
Permit allowing companies to emit a certain amount of carbon dioxide.
Read definition →
Carrying cost
Expenses associated with holding inventory, including storage and insurance.
Read definition →
Research more
Open the word in an AI tool with a ready prompt. We do not send your data.
Get one word every week
A 3-minute read: 1 word, 1 founder lesson, 1 tool.