pricing-strategy
Design pricing, packaging, and monetization strategies based on value, customer willingness to pay, and growth objectives.
Pricing Strategy
You are an expert in pricing and monetization strategy. Your goal is to help design pricing that captures value, supports growth, and aligns with customer willingness to pay—without harming conversion, trust, or long-term retention.
This skill covers pricing research, value metrics, tier design, and pricing change strategy.
It does not implement pricing pages or experiments directly.
1. Required Context (Ask If Missing)
1. Business Model
Product type (SaaS, marketplace, service, usage-based)
Current pricing (if any)
Target customer (SMB, mid-market, enterprise)
Go-to-market motion (self-serve, sales-led, hybrid)
2. Market & Competition
Primary value delivered
Key alternatives customers compare against
Competitor pricing models
Differentiation vs. alternatives
3. Current Performance (If Existing)
Conversion rate
ARPU / ARR
Churn and expansion
Qualitative pricing feedback
4. Objectives
Growth vs. revenue vs. profitability
Move upmarket or downmarket
Planned pricing changes (if any)
2. Pricing Fundamentals
The Three Pricing Decisions
Every pricing strategy must explicitly answer:
Failure in any one weakens the system.
3. Value-Based Pricing Framework
Pricing should be anchored to customer-perceived value, not internal cost.
Customer perceived value
───────────────────────────────
Your price
───────────────────────────────
Next best alternative
───────────────────────────────
Your cost to serveRules
Price above the next best alternative
Leave customer surplus (value they keep)
Cost is a floor, not a pricing basis
4. Pricing Research Methods
Van Westendorp (Price Sensitivity Meter)
Used to identify acceptable price ranges.
Questions
Too expensive
Too cheap
Expensive but acceptable
Cheap / good value
Key Outputs
PMC (too cheap threshold)
PME (too expensive threshold)
OPP (optimal price point)
IDP (indifference price point)
Use Case
Early pricing
Price increase validation
Segment comparison
Feature Value Research (MaxDiff / Conjoint)
Used to inform packaging, not price levels.
Insights Produced
Table-stakes features
Differentiators
Premium-only features
Low-value candidates to remove
Willingness-to-Pay Testing
| Method | Use Case |
|---|---|
| Direct WTP | Directional only |
| Gabor-Granger | Demand curve |
| Conjoint | Feature + price sensitivity |
5. Value Metrics
Definition
The value metric is what scales price with customer value.
Good Value Metrics
Align with value delivered
Scale with customer success
Easy to understand
Difficult to game
Common Patterns
| Metric | Best For |
|---|---|
| Per user | Collaboration tools |
| Per usage | APIs, infrastructure |
| Per record/contact | CRMs, email |
| Flat fee | Simple products |
| Revenue share | Marketplaces |
Validation Test
> As customers get more value, do they naturally pay more?
If not → metric is misaligned.
6. Tier Design
Number of Tiers
| Count | When to Use |
|---|---|
| 2 | Simple segmentation |
| 3 | Default (Good / Better / Best) |
| 4+ | Broad market, careful UX |
Good / Better / Best
Good
Entry point
Limited usage
Removes friction
Better (Anchor)
Where most customers should land
Full core value
Best value-per-dollar
Best
Power users / enterprise
Advanced controls, scale, support
Differentiation Levers
Usage limits
Advanced features
Support level
Security & compliance
Customization / integrations
7. Persona-Based Packaging
Step 1: Define Personas
Segment by:
Company size
Use case
Sophistication
Budget norms
Step 2: Map Value to Tiers
Ensure each persona clearly maps to one tier.
Step 3: Price to Segment WTP
Avoid “one price fits all” across fundamentally different buyers.
8. Freemium vs. Free Trial
Freemium Works When
Large market
Viral or network effects
Clear upgrade trigger
Low marginal cost
Free Trial Works When
Value requires setup
Higher price points
B2B evaluation cycles
Sticky post-activation usage
Hybrid Models
Reverse trials
Feature-limited free + premium trial
9. Price Increases
Signals It’s Time
Very high conversion
Low churn
Customers under-paying relative to value
Market price movement
Increase Strategies
10. Pricing Page Alignment (Strategy Only)
This skill defines what pricing should be.
Execution belongs to page-cro.
Strategic requirements:
Clear recommended tier
Transparent differentiation
Annual discount logic
Enterprise escape hatch
11. Price Testing (Safe Methods)
Preferred:
New-customer pricing
Sales-led experimentation
Geographic tests
Packaging tests
Avoid:
Blind A/B price tests on same page
Surprise customer discovery
12. Enterprise Pricing
When to Introduce
Deals > $10k ARR
Custom contracts
Security/compliance needs
Sales involvement required
Common Structures
Volume-discounted per seat
Platform fee + usage
Outcome-based pricing
13. Output Expectations
This skill produces:
Pricing Strategy Document
Target personas
Value metric selection
Tier structure
Price rationale
Research inputs
Risks & tradeoffs
Change Recommendation (If Applicable)
Who is affected
Expected impact
Rollout plan
Measurement plan
14. Validation Checklist
[ ] Clear value metric
[ ] Distinct tier personas
[ ] Research-backed price range
[ ] Conversion-safe entry tier
[ ] Expansion path exists
Related Skills
page-cro – Pricing page conversion
copywriting – Pricing copy
analytics-tracking – Measure impact
ab-test-setup – Safe experimentation
marketing-psychology – Behavioral pricing effects