/pricing -- Pricing Strategy Design

Build a pricing strategy from first principles: analyze pricing models, estimate willingness to pay, benchmark against competitors, and design pricing experiments.

Invocation

/pricing SaaS project management tool moving from free to paid
/pricing Should we switch from per-seat to usage-based pricing?
/pricing [upload competitor pricing pages or current pricing data]

Workflow

Step 0: Triage — What Kind of Pricing Question Is This?

First, ask the user:

"Are you exploring how to charge (pricing models, tiers, willingness-to-pay) or what to charge for (revenue streams, monetization approaches)?"

• "How to charge" → This is a pricing design question. Proceed through Steps 1–5 using the pricing-strategy skill focused on tiers, price points, and packaging.
• "What to charge for" → This is a monetization question. Apply the monetization-models skill to explore revenue stream options (subscription, marketplace take rate, freemium, usage-based, etc.) before proceeding to pricing design.
• "Both" → Start with monetization model selection (Step 1a), then proceed to pricing design (Steps 1–5).

Step 1: Understand the Pricing Context

Ask:

• What is the product? What value does it deliver?
• Current pricing (if any): model, price points, packaging
• What's the trigger? (new product, pricing change, competitive pressure, growth stall)
• Target customer profile and their budget context
• Any constraints? (contractual obligations, market expectations, competitive positioning)

Step 2: Analyze Pricing Models

Apply the pricing-strategy and monetization-models skills:

Evaluate applicable models:

• Flat-rate: Simple, predictable — best for commoditized products
• Per-seat/user: Scales with adoption — best for collaboration tools
• Usage-based: Aligns cost with value — best for infrastructure and API products
• Tiered: Captures different willingness to pay — best for segmented markets
• Freemium: Drives adoption — best for products with network effects
• Hybrid: Combines models — best for complex products with multiple value levers

For each relevant model: pros, cons, fit for your product, revenue projection approach.

Step 3: Competitive Pricing Analysis

Using web research:

• Benchmark pricing against 3-5 competitors
• Identify pricing model patterns in the category
• Note pricing trends (e.g., shift from per-seat to usage-based in B2B SaaS)
• Find pricing page screenshots and data points

Step 4: Willingness to Pay Estimation

If the user has survey data or customer feedback:

• Apply Van Westendorp analysis (if data available)
• Segment willingness to pay by user type

If no data:

• Estimate based on value delivered, competitive anchoring, and market norms
• Design a willingness-to-pay survey the user can run

Step 5: Generate Pricing Recommendation

## Pricing Strategy: [Product]

**Date**: [today]
**Current pricing**: [if applicable]

### Recommended Model: [Model Name]

**Why this model**: [rationale tied to product value delivery]

### Pricing Structure
| Tier | Price | Includes | Target Segment | Key Limit |
|------|-------|---------|---------------|-----------|

### Free / Trial Strategy
[What's free, what's gated, conversion triggers]

### Competitive Benchmark
| Competitor | Model | Price Range | Positioning |
|-----------|-------|-----------|------------|

### Revenue Projections
| Scenario | Assumptions | Year 1 ARR | Year 2 ARR |
|----------|-----------|-----------|-----------|
| Conservative | [X] | [Y] | [Z] |
| Expected | [X] | [Y] | [Z] |
| Optimistic | [X] | [Y] | [Z] |

### Migration Plan
[If changing pricing: how to transition existing customers]
- Grandfathering approach
- Communication plan
- Timeline

### Pricing Experiments
| Experiment | What We're Testing | Method | Duration |
|-----------|-------------------|--------|----------|

### Risks and Mitigations
| Risk | Likelihood | Impact | Mitigation |
|------|-----------|--------|-----------|

### Key Metrics to Track
- Conversion rate by tier
- Average revenue per user (ARPU)
- Upgrade/downgrade rates
- Churn by price sensitivity
- Price elasticity signals

Save as markdown.

Step 6: Offer Next Steps

• "Want me to create a monetization strategy with alternative revenue models?"
• "Should I run a market scan to validate pricing assumptions?"
• "Want me to draft customer communication for the pricing change?"
• "Should I design the A/B test for pricing experiments?"

Notes

• Pricing is the most powerful lever for revenue growth — a 1% improvement in pricing typically has 3-4x the impact of 1% improvement in customer acquisition
• Value-based pricing always beats cost-plus — start from customer value, not your costs
• The best pricing is simple to understand and predictable for the customer
• Freemium only works if free users generate value (network effects, word of mouth, marketplace liquidity)
• Always design a migration path for existing customers — pricing changes that alienate your base destroy trust