| name | pricing-analysis |
| description | Analyzes pricing effectiveness with elasticity estimates, competitor benchmarking, value perception, and optimization recommendations. Use when evaluating or adjusting your pricing. |
| allowed-tools | Read Write Glob |
| metadata | {"author":"matthewhitcham","version":"1.0"} |
Pricing Analysis
When to Use This Skill
Use this skill when you need to:
- Evaluate whether your current pricing is optimal
- Benchmark your prices against competitors
- Analyze the impact of a price change before implementing it
- Design a pricing structure (tiers, bundles, freemium)
DO NOT use this skill for financial modeling, revenue forecasting, or cost accounting. This is for pricing strategy analysis and optimization.
Core Principle
PRICE BASED ON VALUE DELIVERED, NOT COST INCURRED — YOUR PRICE SHOULD REFLECT WHAT THE CUSTOMER GAINS, NOT WHAT IT COSTS YOU TO DELIVER.
Phase 1: Brief
Required Inputs
| Input | What to Ask | Default |
|---|
| Product/service | "What are you pricing?" | Must be provided |
| Current price | "What do you charge now?" | Must be provided |
| Pricing model | "One-time, subscription, per-unit, tiered, usage-based?" | Must be provided |
| Competitors | "Who are your top 3 competitors and what do they charge?" | Will research |
| Customer feedback | "Have customers commented on price? (too high, fair, would pay more)" | No direct feedback |
| Goal | "What are you optimizing for? (revenue, volume, market share, margin)" | Revenue maximization |
GATE: Confirm brief before proceeding.
Phase 2: Analyze
Analysis Framework
- Competitive positioning — where you sit relative to competitors (premium, mid-market, budget)
- Value metric alignment — does your pricing scale with the value customers receive?
- Price sensitivity indicators — signals from conversion rates, objections, or win/loss data
- Willingness to pay estimation — Van Westendorp or comparable framework
- Margin analysis — gross margin at current price and at proposed alternatives
Competitive Benchmark Table
| Competitor | Price | Model | Key Differentiator |
|---|
| Competitor A | $X/mo | Subscription | Feature X |
| Competitor B | $Y one-time | Lifetime | Community access |
| You | $Z/mo | Subscription | Your differentiator |
GATE: Present analysis findings and wait for direction before making recommendations.
Phase 3: Build
Deliverables
1. Pricing Analysis Report
- Competitive benchmark with positioning map
- Current pricing strengths and weaknesses
- Price sensitivity assessment
- Revenue impact estimates for proposed changes
2. Pricing Recommendations
- 2-3 pricing options with projected outcomes
- Tier structure recommendations (if applicable)
- Bundling or packaging suggestions
- Implementation approach (grandfather existing, phase in, immediate)
3. Price Change Impact Model
- Scenario table: price x estimated volume = projected revenue
- Conservative, base, and optimistic scenarios
- Break-even analysis: how many customers can you lose before the increase hurts?
4. Communication Plan
- How to announce price changes to existing customers
- Messaging framework that leads with value, not cost
- Grandfather policy recommendations
- FAQ for customer-facing team
Phase 4: Polish
Testing Recommendations
- A/B test pricing page if traffic allows
- Offer the new price to new customers first, keep existing customers on current plan
- Survey 10 customers with "Would you pay $X for this?" before committing
Review Cadence
Reassess pricing every 6-12 months as value delivered, costs, and competitive landscape change.
Example 1: SaaS Product ($29/month, considering increase)
Finding: Competitors charge $39-$79/month for similar features. Current price signals "basic tool" not "premium solution."
Recommendation: Increase to $49/month for new customers, grandfather existing at $29 for 12 months. Expected: 10% volume decrease, 55% revenue increase.
Example 2: Digital Product ($97 one-time, considering tiers)
Finding: Single price forces budget-conscious and premium buyers into the same option.
Recommendation: Three tiers — Basic ($67), Standard ($127), Premium ($247) — with clear feature differentiation. Expected 30% revenue increase from upsell capture.
Anti-Patterns
- Cost-plus pricing — adding a margin to your costs ignores what customers value. A course that costs $50 to produce may be worth $500 to the buyer.
- Competitor matching — pricing at the same level without differentiation is a race to the bottom. Price reflects positioning.
- Fear of raising prices — most businesses underprice. If nobody complains about your price, it is probably too low.
- One price for everyone — different segments have different willingness to pay. Tiers or packages capture more value.
- Changing price without communicating value — a price increase without reinforced value feels like a cash grab. Always lead with value.
Recovery
- No competitor data: Use industry benchmarks, comparable products in adjacent categories, or customer willingness-to-pay surveys.
- User afraid to raise prices: Start with new customers only. Grandfather existing customers to reduce risk. Test small increases first.
- Customers already say price is too high: Investigate whether it is a price problem or a value communication problem. Often the landing page is the issue, not the price.
- Pricing is genuinely complex: Simplify first. If you cannot explain your pricing in 10 seconds, customers cannot evaluate it.
