domains / business / pricing-strategy / pricing-strategy

pricing-strategy

Skill card

combined

The four skills overlap on core pricing concepts (value metrics, tier design, anchoring, Van Westendorp) but each contains material steps or constraints the others lack. phuryn includes a specific output template and competitive mapping steps; kostja94 adds variable-cost product logic and cross-references to discount/page skills; RefoundAI focuses on WTP validation, incentive-compatible research, and iteration cadence; LeoYeAI adds price-increase triggers, MaxDiff, and pricing page best practices. Crowning one would hide these distinct approaches and constraints.

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Combined skill

# Pricing Strategy

## 1. Context & Assessment
- Read any provided files (competitor data, surveys, financials) or project context files (e.g., `contextus.md`, `.agents/product-marketing-context.md`).
- Identify product type, target market, go-to-market motion, and current performance (conversion, ARPU, churn).
- Determine the primary value delivered and the customer's next best alternative.

## 2. Value Metric Selection
- Define the core unit of value that scales with customer success (e.g., seats, usage, transactions).
- Ensure the metric is easy to understand, hard to game, and aligns price with value.
- For variable-cost products (compute, AI), align pricing to cost structure (usage-based or credits) if per-user cost varies widely.

## 3. Pricing Model & Tiers
- Select a model: Flat, Per-seat, Usage-based, Tiered, Freemium, or Hybrid.
- Design 2-4 tiers (Good-Better-Best) with clear differentiation via features, limits, or support.
- Use feature gating based on value, not arbitrary limits.

## 4. Competitive & WTP Analysis
- Map competitor pricing tiers and identify positioning (premium, mid-market, budget).
- Estimate willingness to pay using Van Westendorp or incentive-compatible methods to avoid hypothetical bias.
- Focus on the correct order of magnitude before fine-tuning exact dollar amounts.

## 5. Anchoring & Presentation
- Set the 'Most Popular' tier as the anchor.
- Apply an annual discount (typically 15-25%) to improve cash flow.
- Use decoy effects and clear price displays (monthly vs. annual).

## 6. Iteration & Optimization
- Plan A/B tests for pricing pages and tier names.
- Establish a cadence (every 6-12 months) to revisit pricing as the product matures.
- Monitor signals for price increases (high conversion, low churn, competitor moves).

## Output
- Recommended Model and Value Metric.
- Tier structure table (Price, Segment, Features, Positioning).
- Key assumptions and risks with mitigation strategies.
- Pricing page recommendations (if applicable).