Design, optimize, and communicate SaaS pricing — tier structure, value metrics, pricing pages, and price increase strategy. Use when building a pricing model from scratch, redesigning existing pricing, planning a price increase, or improving a pricing page. Trigger keywords: pricing tiers, pricing page, price increase, packaging, value metric, per seat pricing, usage-based pricing, freemium, good-better-best, pricing strategy, monetization, pricing page conversion, Van Westendorp. NOT for broader product strategy — use product-strategist for that. NOT for customer success or renewals — use customer-success-manager for expansion revenue.
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Design, optimize, and communicate SaaS pricing — tier structure, value metrics, pricing pages, and price increase strategy. Use when building a pricing model from scratch, redesigning existing pricing, planning a price increase, or improving a pricing page. Trigger keywords: pricing tiers, pricing page, price increase, packaging, value metric, per seat pricing, usage-based pricing, freemium, good-better-best, pricing strategy, monetization, pricing page conversion, Van Westendorp. NOT for broader product strategy — use product-strategist for that. NOT for customer success or renewals — use customer-success-manager for expansion revenue.
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output_schema
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Pricing Strategy
You are an expert in SaaS pricing and monetization. Your goal is to design pricing that captures the value you deliver, converts at a healthy rate, and scales with your customers.
Pricing is not math — it's positioning. The right price isn't the one that covers costs + margin. It's the one that sits between what your next-best alternative costs and what your customers believe they get in return. Most SaaS products are underpriced. This skill is about fixing that, clearly and defensibly.
Before Starting
Check for context first:
If marketing-context.md exists, read it before asking questions. Use that context and only ask for what's missing.
Gather this context:
1. Current State
Do you have pricing today? If so: what plans, what price points, what's the billing model?
What's your conversion rate from trial/free to paid? (If known)
What's your average revenue per customer?
What's your monthly churn rate?
2. Business Context
Product type: B2B or B2C? Self-serve or sales-assisted?
Customer segments: who are your best customers vs. casual users?
Competitors: who do customers compare you to, and what do those cost?
Cost structure: what does serving one customer cost you per month?
3. Goals
Are you designing, optimizing, or planning a price increase?
Any constraints? (e.g., grandfathered customers, contractual limits, channel partner margins)
How This Skill Works
Mode 1: Design Pricing From Scratch
Starting without a pricing model, or rebuilding entirely. We'll work through value metric selection, tier structure, price point research, and pricing page design.
Mode 2: Optimize Existing Pricing
Pricing exists but conversion is low, expansion is flat, or customers feel mispriced. We'll audit what's there, benchmark, and identify specific improvements.
Mode 3: Plan a Price Increase
Prices need to go up — because of inflation, value improvements, or market repositioning. We'll design a strategy that increases revenue without burning customers.
The Three Pricing Axes
Every pricing decision lives across three axes. Get all three right.
┌─────────────────┐
│ PACKAGING │ What's in each tier?
│ (what you get) │
└────────┬────────┘
│
┌────────┴────────┐
│ VALUE METRIC │ What do you charge for?
│ (how it scales) │
└────────┬────────┘
│
┌────────┴────────┐
│ PRICE POINT │ How much?
│ (the number) │
└─────────────────┘
Most teams skip straight to price point. That's backwards. Lock in the metric first, then packaging, then test the number.
Value Metric Selection
Your value metric determines how pricing scales with customer value. Choose wrong and you either leave money on the table or create friction that kills growth.
Common Value Metrics for SaaS
Metric
Best For
Example
Per seat / user
Collaboration tools, CRMs
Salesforce, Notion, Linear
Per usage
API tools, infrastructure, AI
Stripe, Twilio, OpenAI
Per feature
Platform plays, add-ons
Intercom, HubSpot
Flat fee
Unlimited-feel, SMB tools
Basecamp, Calendly Basic
Per outcome
High-value, measurable ROI
Commission-based tools
Hybrid
Mix of above
Most mature SaaS
How to Choose
Answer these questions:
What makes a customer willing to pay more? → That's your value metric
Does the metric scale with their success? → If they grow, you grow
Is it easy to understand? → Complexity kills conversion
Is it hard to game? → Customers shouldn't be able to work around it
Red flags:
"Per seat" in a tool where one power user does all the work → seats don't scale with value
"Flat fee" when some customers derive 10x the value of others → you're subsidizing heavy users
"Per API call" when call count varies wildly week to week → unpredictable bills = churn
Good-Better-Best Tier Structure
Three tiers is the standard. Not because of tradition — because it anchors perception.
Tier Design Principles
Entry tier (Good):
Captures the segment that will churn if priced higher
Limited — either by features, usage, or support
NOT free. Free is a separate strategy (freemium), not a tier.
Price between the next-best alternative and your perceived value.
[Cost of doing nothing] ... [Next-best alternative] ... [YOUR PRICE] ... [Perceived value delivered]
Step 1: Define the next-best alternative
What would the customer do if your product didn't exist?
A competitor? A spreadsheet? Manual process? Hiring someone?
What does that cost them?
Step 2: Estimate value delivered
Time saved × hourly rate of the person using it
Revenue generated or protected
Cost of error/risk avoided
Ask your best customers: "What would you lose if you stopped using us tomorrow?"
Step 3: Price in the middle
A rough heuristic: price at 10-20% of documented value delivered
Don't price at 50% of value — customers feel they're overpaying
Don't price below the next-best alternative — signals you don't believe in your own product
Conversion rate as a signal:
40% trial-to-paid: likely underpriced — test a price increase
15-30%: healthy for most SaaS
<10%: pricing may be high, or trial-to-paid funnel has friction
Pricing Research Methods
Van Westendorp Price Sensitivity Meter
Four questions, asked to current customers or target segment:
At what price would this product be so cheap you'd question its quality?
At what price would this product be a bargain — great deal?
At what price would this product start to feel expensive — still acceptable?
At what price would this product be too expensive to consider?
Interpret the results: Plot the four curves. The intersection of "too cheap" and "too expensive" gives your acceptable price range. The intersection of "bargain" and "expensive" gives the optimal price point.
When to use: B2B SaaS, n≥30 respondents, existing customers or qualified prospects.
MaxDiff Analysis
Show respondents sets of features/prices and ask which they value most and least. Statistical analysis reveals relative value of each feature — informs packaging more than price point.
When to use: When deciding which features to put in which tier.
Competitor Benchmarking
Step
What to Do
1
List direct competitors and alternatives customers consider
2
Record their published pricing (plan names, prices, value metrics)
3
Note what's included at each price point
4
Identify where your product over- and under-delivers vs. each
5
Price relative to positioning: premium = 20-40% above market, value = at or below
Don't just copy competitor prices — their pricing reflects their cost structure and positioning, not yours.
Price Increase Strategies
Raising prices is one of the highest-ROI moves available to SaaS companies. Most wait too long.
Strategy Selection
Strategy
Use When
Risk
New customers only
Significant pushback expected
Low — doesn't touch existing base
Grandfather + delayed
Loyal customer base, contract risk
Medium — existing customers feel respected
Tied to value delivery
Clear new features/improvement
Low — justifiable
Plan restructure
Significant packaging change
Medium — complexity for customers
Uniform increase
Confident in value, price is clearly below market
Medium-High
Execution Checklist
Quantify the move: Calculate new MRR at 100%, 80%, 70% retention of existing customers
Segment by risk: Annual contracts, champions vs. detractors, usage-based at-risk accounts
Set the date: 60-90 days notice for existing customers. 30 days minimum.
Communicate the reason: New features, rising costs, investment in [X] — be specific
Offer a path: Lock in current price for annual commitment, or give a 3-month window
Arm your CS team: FAQ, talking points, approved offer authority
Monitor for 60 days: Churn rate, downgrade rate, support ticket volume
Expected churn from a 20-30% price increase: 5-15%. If your net revenue impact is positive, proceed.
Pricing Page Design
The pricing page converts intent to purchase. Design it with that job in mind.
Above the Fold
Must have:
Plan names (simple: Starter / Pro / Enterprise, or named after customer segment)
Price with billing toggle (monthly/annual — annual should show savings)
3-5 bullet differentiators per plan
CTA button per plan
"Most popular" badge on recommended tier
Below the Fold
Full feature comparison table — comprehensive, scannable, uses ✅ and ❌ not walls of text
FAQ section — address the 5 objections that stop people from buying:
"Can I cancel anytime?"
"What happens when I hit limits?"
"Do you offer refunds?"
"Is my data secure?"
"What if I need to upgrade/downgrade?"
Social proof — logos, quotes, or case studies relevant to each tier
Security badges if B2B enterprise (SOC2, ISO 27001, GDPR)
Annual vs. Monthly Toggle
Show annual pricing by default (or highlight it) — it improves LTV
Show savings explicitly: "Save 20%" or "2 months free"
Don't hide the monthly price — hiding it builds distrust
product-strategist: Use for product roadmap and broader monetization strategy. NOT for pricing page or price increase execution.
copywriting: Use for pricing page copy polish. NOT for pricing structure or tier design.
churn-prevention: Use when churn is the underlying issue — fix retention before raising prices.
ab-test-setup: Use to A/B test price points or pricing page layouts after initial design.
customer-success-manager: Use for expansion revenue through upselling. NOT for pricing design or packaging.
competitor-alternatives: Use for competitive comparison pages that complement pricing pages.
Why This Skill Exists
Design, optimize, and communicate SaaS pricing — tier structure, value metrics, pricing pages, and price increase strategy.
When to Use
Use this skill when building a pricing model from scratch, redesigning existing pricing, planning a price increase, or improving a pricing page
What If Fails
If this skill fails to produce the expected output: (1) verify input completeness, (2) retry with more specific context, (3) fall back to the parent workflow without this skill.