Pricing Strategist

Expert pricing strategy and optimization system that helps you develop pricing models, analyze willingness to pay, optimize revenue, and test pricing changes. This skill provides structured frameworks for pricing decisions based on economic principles, behavioral psychology, and revenue optimization best practices.

Pricing is one of the most powerful levers for business growth. This skill helps you move beyond cost-plus pricing to value-based strategies, design pricing tiers that maximize revenue, and test changes scientifically. Whether you're launching a new product or optimizing existing pricing, this provides the analytical rigor and strategic thinking required.

Built on pricing psychology, behavioral economics, and SaaS pricing best practices, this skill combines willingness-to-pay research, competitive analysis, and experimentation frameworks to optimize your most important revenue lever.

Core Workflows

Workflow 1: Pricing Model Selection

Choose the right pricing structure for your business

1. Common Pricing Models

   Cost-Plus Pricing

   • Formula: Cost + Markup % = Price
   • Pros: Simple, ensures margin
   • Cons: Ignores customer value, leaves money on table
   • Best for: Commodities, manufacturing, retail

   Competitive Pricing

   • Formula: Match or undercut competitor prices
   • Pros: Fast to market, safe
   • Cons: Race to bottom, ignores your unique value
   • Best for: Undifferentiated markets, price-sensitive customers

   Value-Based Pricing

   • Formula: Price based on value delivered to customer
   • Pros: Maximizes revenue, aligns with customer outcomes
   • Cons: Requires deep customer understanding
   • Best for: Differentiated products, B2B SaaS, consulting

   Freemium

   • Formula: Free tier + paid premium tiers
   • Pros: Low barrier, viral growth, try before buy
   • Cons: Conversion rate typically 2-5%, support costs
   • Best for: PLG (product-led growth), network effects

   Usage-Based Pricing

   • Formula: Pay per unit consumed (API calls, seats, GB, transactions)
   • Pros: Aligns cost with value, grows with customer
   • Cons: Unpredictable revenue, complex billing
   • Best for: Infrastructure, APIs, marketplaces

   Tiered Pricing

   • Formula: Good/Better/Best packages at different price points
   • Pros: Customer segmentation, upsell path, price discrimination
   • Cons: Complexity, analysis paralysis
   • Best for: SaaS, subscriptions, services

   Performance-Based Pricing

   • Formula: Fee tied to results delivered (% of savings, revenue share)
   • Pros: Aligns incentives, de-risks for customer
   • Cons: Hard to measure, revenue uncertainty
   • Best for: Consulting, AdTech, FinTech

2. Model Selection Criteria

   • Customer preference (how do they want to buy?)
   • Competitive norms (what's standard in industry?)
   • Value delivery (when does customer realize value?)
   • Revenue predictability (do you need stable MRR?)
   • Sales motion (self-serve vs. enterprise sales?)

Workflow 2: Willingness to Pay Research

Understand what customers will actually pay

1. Research Methods

   Van Westendorp Price Sensitivity Meter Ask 4 questions:

   • At what price is this too expensive (wouldn't consider)?
   • At what price is this expensive (but would consider)?
   • At what price is this a bargain?
   • At what price is this too cheap (would question quality)?

   Plot responses to find:

   • Optimal Price Point: Intersection of "expensive" and "bargain"
   • Acceptable Price Range: Between "too expensive" and "too cheap"

   Conjoint Analysis

   • Present customers with product bundles with varying features and prices
   • Ask to choose preferred bundle
   • Statistically derive feature value and price sensitivity
   • Reveals trade-offs customers make

   Competitor Analysis

   • Research competitor pricing (public pricing pages, sales calls)
   • Identify pricing tiers and feature differentiation
   • Map value proposition vs. price
   • Find gaps and opportunities

   Customer Interviews

   • Ask about current spend on alternatives
   • Budget authority (how much can they approve without escalation?)
   • ROI expectations (what value justifies investment?)
   • Pricing structure preferences

2. Segmentation Different customer segments have different willingness to pay:

   • By company size: SMB vs. Mid-Market vs. Enterprise
   • By use case: High-value vs. low-value applications
   • By geography: Purchasing power varies by region
   • By industry: Some industries have higher budgets

   Tailor pricing tiers to segments.

Workflow 3: Pricing Tier Design

Structure pricing tiers to maximize revenue and customer fit

1. Tier Strategy

   3-Tier Model (Most Common)

   • Starter/Basic (Anchor):
     • Purpose: Low barrier entry, volume play
     • Price: $X/month (affordable, minimal friction)
     • Features: Co

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