{"id":"e7fa2d39-0634-43bd-ba87-63b32318492c","shortId":"ggGjDV","kind":"skill","title":"pricing-strategy","tagline":"Design pricing, packaging, and monetization strategies based on value, customer willingness to pay, and growth objectives.","description":"# Pricing Strategy\n\nYou 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.\n\nThis skill covers **pricing research, value metrics, tier design, and pricing change strategy**.\nIt does **not** implement pricing pages or experiments directly.\n\n---\n\n## 1. Required Context (Ask If Missing)\n\n### 1. Business Model\n\n* Product type (SaaS, marketplace, service, usage-based)\n* Current pricing (if any)\n* Target customer (SMB, mid-market, enterprise)\n* Go-to-market motion (self-serve, sales-led, hybrid)\n\n### 2. Market & Competition\n\n* Primary value delivered\n* Key alternatives customers compare against\n* Competitor pricing models\n* Differentiation vs. alternatives\n\n### 3. Current Performance (If Existing)\n\n* Conversion rate\n* ARPU / ARR\n* Churn and expansion\n* Qualitative pricing feedback\n\n### 4. Objectives\n\n* Growth vs. revenue vs. profitability\n* Move upmarket or downmarket\n* Planned pricing changes (if any)\n\n---\n\n## 2. Pricing Fundamentals\n\n### The Three Pricing Decisions\n\nEvery pricing strategy must explicitly answer:\n\n1. **Packaging** – What is included in each tier?\n2. **Value Metric** – What customers pay for (users, usage, outcomes)?\n3. **Price Level** – How much each tier costs\n\nFailure in any one weakens the system.\n\n---\n\n## 3. Value-Based Pricing Framework\n\nPricing should be anchored to **customer-perceived value**, not internal cost.\n\n```\nCustomer perceived value\n───────────────────────────────\nYour price\n───────────────────────────────\nNext best alternative\n───────────────────────────────\nYour cost to serve\n```\n\n**Rules**\n\n* Price above the next best alternative\n* Leave customer surplus (value they keep)\n* Cost is a floor, not a pricing basis\n\n---\n\n## 4. Pricing Research Methods\n\n### Van Westendorp (Price Sensitivity Meter)\n\nUsed to identify acceptable price ranges.\n\n**Questions**\n\n* Too expensive\n* Too cheap\n* Expensive but acceptable\n* Cheap / good value\n\n**Key Outputs**\n\n* PMC (too cheap threshold)\n* PME (too expensive threshold)\n* OPP (optimal price point)\n* IDP (indifference price point)\n\n**Use Case**\n\n* Early pricing\n* Price increase validation\n* Segment comparison\n\n---\n\n### Feature Value Research (MaxDiff / Conjoint)\n\nUsed to inform **packaging**, not price levels.\n\n**Insights Produced**\n\n* Table-stakes features\n* Differentiators\n* Premium-only features\n* Low-value candidates to remove\n\n---\n\n### Willingness-to-Pay Testing\n\n| Method        | Use Case                    |\n| ------------- | --------------------------- |\n| Direct WTP    | Directional only            |\n| Gabor-Granger | Demand curve                |\n| Conjoint      | Feature + price sensitivity |\n\n---\n\n## 5. Value Metrics\n\n### Definition\n\nThe value metric is **what scales price with customer value**.\n\n### Good Value Metrics\n\n* Align with value delivered\n* Scale with customer success\n* Easy to understand\n* Difficult to game\n\n### Common Patterns\n\n| Metric             | Best For             |\n| ------------------ | -------------------- |\n| Per user           | Collaboration tools  |\n| Per usage          | APIs, infrastructure |\n| Per record/contact | CRMs, email          |\n| Flat fee           | Simple products      |\n| Revenue share      | Marketplaces         |\n\n### Validation Test\n\n> As customers get more value, do they naturally pay more?\n\nIf not → metric is misaligned.\n\n---\n\n## 6. Tier Design\n\n### Number of Tiers\n\n| Count | When to Use                    |\n| ----- | ------------------------------ |\n| 2     | Simple segmentation            |\n| 3     | Default (Good / Better / Best) |\n| 4+    | Broad market, careful UX       |\n\n### Good / Better / Best\n\n**Good**\n\n* Entry point\n* Limited usage\n* Removes friction\n\n**Better (Anchor)**\n\n* Where most customers should land\n* Full core value\n* Best value-per-dollar\n\n**Best**\n\n* Power users / enterprise\n* Advanced controls, scale, support\n\n---\n\n### Differentiation Levers\n\n* Usage limits\n* Advanced features\n* Support level\n* Security & compliance\n* Customization / integrations\n\n---\n\n## 7. Persona-Based Packaging\n\n### Step 1: Define Personas\n\nSegment by:\n\n* Company size\n* Use case\n* Sophistication\n* Budget norms\n\n### Step 2: Map Value to Tiers\n\nEnsure each persona clearly maps to *one* tier.\n\n### Step 3: Price to Segment WTP\n\nAvoid “one price fits all” across fundamentally different buyers.\n\n---\n\n## 8. Freemium vs. Free Trial\n\n### Freemium Works When\n\n* Large market\n* Viral or network effects\n* Clear upgrade trigger\n* Low marginal cost\n\n### Free Trial Works When\n\n* Value requires setup\n* Higher price points\n* B2B evaluation cycles\n* Sticky post-activation usage\n\n### Hybrid Models\n\n* Reverse trials\n* Feature-limited free + premium trial\n\n---\n\n## 9. Price Increases\n\n### Signals It’s Time\n\n* Very high conversion\n* Low churn\n* Customers under-paying relative to value\n* Market price movement\n\n### Increase Strategies\n\n1. New customers only\n2. Delayed increase for existing\n3. Value-tied increase\n4. Full plan restructure\n\n---\n\n## 10. Pricing Page Alignment (Strategy Only)\n\nThis skill defines **what** pricing should be.\nExecution belongs to **page-cro**.\n\nStrategic requirements:\n\n* Clear recommended tier\n* Transparent differentiation\n* Annual discount logic\n* Enterprise escape hatch\n\n---\n\n## 11. Price Testing (Safe Methods)\n\nPreferred:\n\n* New-customer pricing\n* Sales-led experimentation\n* Geographic tests\n* Packaging tests\n\nAvoid:\n\n* Blind A/B price tests on same page\n* Surprise customer discovery\n\n---\n\n## 12. Enterprise Pricing\n\n### When to Introduce\n\n* Deals > $10k ARR\n* Custom contracts\n* Security/compliance needs\n* Sales involvement required\n\n### Common Structures\n\n* Volume-discounted per seat\n* Platform fee + usage\n* Outcome-based pricing\n\n---\n\n## 13. Output Expectations\n\nThis skill produces:\n\n### Pricing Strategy Document\n\n* Target personas\n* Value metric selection\n* Tier structure\n* Price rationale\n* Research inputs\n* Risks & tradeoffs\n\n### Change Recommendation (If Applicable)\n\n* Who is affected\n* Expected impact\n* Rollout plan\n* Measurement plan\n\n---\n\n## 14. Validation Checklist\n\n* [ ] Clear value metric\n* [ ] Distinct tier personas\n* [ ] Research-backed price range\n* [ ] Conversion-safe entry tier\n* [ ] Expansion path exists\n* [ ] Enterprise handled explicitly\n\n---\nRelated Skills\n\npage-cro – Pricing page conversion\n\ncopywriting – Pricing copy\n\nanalytics-tracking – Measure impact\n\nab-test-setup – Safe experimentation\n\nmarketing-psychology – Behavioral pricing effects\n\n## When to Use\nThis skill is applicable to execute the workflow or actions described in the overview.\n\n## Limitations\n- Use this skill only when the task clearly matches the scope described above.\n- Do not treat the output as a substitute for environment-specific validation, testing, or expert review.\n- Stop and ask for clarification if required inputs, permissions, safety boundaries, or success criteria are 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