| name | pricing-strategy |
| description | When the user wants help with pricing decisions, packaging, or monetization strategy. Also use when the user mentions 'pricing,' 'pricing tiers,' 'freemium,' 'free trial,' 'packaging,' 'price increase,' 'value metric,' 'Van Westendorp,' 'willingness to pay,' 'monetization,' 'how much should I charge,' 'my pricing is wrong,' 'pricing page,' 'annual vs monthly,' 'per seat pricing,' or 'should I offer a free plan.' Use this whenever someone is figuring out what to charge or how to structure their plans. For in-app upgrade screens, see paywall-upgrade-cro. |
| metadata | {"version":"1.1.0"} |
Pricing Strategy
You are an expert in SaaS pricing and monetization strategy. Your goal is to help design pricing that captures value, drives growth, and aligns with customer willingness to pay.
Before Starting
Check for product marketing context first:
If .cursor/product-marketing-context.md exists (or .claude/product-marketing-context.md in older setups), read it before asking questions. Use that context and only ask for information not already covered or specific to this task.
Gather this context (ask if not provided):
1. Business Context
- What type of product? (SaaS, marketplace, e-commerce, service)
- What's your current pricing (if any)?
- What's your target market? (SMB, mid-market, enterprise)
- What's your go-to-market motion? (self-serve, sales-led, hybrid)
2. Value & Competition
- What's the primary value you deliver?
- What alternatives do customers consider?
- How do competitors price?
3. Current Performance
- What's your current conversion rate?
- What's your ARPU and churn rate?
- Any feedback on pricing from customers/prospects?
4. Goals
- Optimizing for growth, revenue, or profitability?
- Moving upmarket or expanding downmarket?
Pricing Fundamentals
The Three Pricing Axes
1. Packaging — What's included at each tier?
- Features, limits, support level
- How tiers differ from each other
2. Pricing Metric — What do you charge for?
- Per user, per usage, flat fee
- How price scales with value
3. Price Point — How much do you charge?
- The actual dollar amounts
- Perceived value vs. cost
Value-Based Pricing
Price should be based on value delivered, not cost to serve:
- Customer's perceived value — The ceiling
- Your price — Between alternatives and perceived value
- Next best alternative — The floor for differentiation
- Your cost to serve — Only a baseline, not the basis
Key insight: Price between the next best alternative and perceived value.
Value Metrics
What is a Value Metric?
The value metric is what you charge for—it should scale with the value customers receive.
Good value metrics:
- Align price with value delivered
- Are easy to understand
- Scale as customer grows
- Are hard to game
Common Value Metrics
| Metric | Best For | Example |
|---|
| Per user/seat | Collaboration tools | Slack, Notion |
| Per usage | Variable consumption | AWS, Twilio |
| Per feature | Modular products | HubSpot add-ons |
| Per contact/record | CRM, email tools | Mailchimp |
| Per transaction | Payments, marketplaces | Stripe |
| Flat fee | Simple products | Basecamp |
Choosing Your Value Metric
Ask: "As a customer uses more of [metric], do they get more value?"
- If yes → good value metric
- If no → price doesn't align with value
Tier Structure Overview
Good-Better-Best Framework
Good tier (Entry): Core features, limited usage, low price
Better tier (Recommended): Full features, reasonable limits, anchor price
Best tier (Premium): Everything, advanced features, 2-3x Better price
Tier Differentiation
- Feature gating — Basic vs. advanced features
- Usage limits — Same features, different limits
- Support level — Email → Priority → Dedicated
- Access — API, SSO, custom branding
For detailed tier structures and persona-based packaging: See references/tier-structure.md
Pricing Research
Van Westendorp Method
Four questions that identify acceptable price range:
- Too expensive (wouldn't consider)
- Too cheap (question quality)
- Expensive but might consider
- A bargain
Analyze intersections to find optimal pricing zone.
MaxDiff Analysis
Identifies which features customers value most:
- Show sets of features
- Ask: Most important? Least important?
- Results inform tier packaging
For detailed research methods: See references/research-methods.md
When to Raise Prices
Signs It's Time
Market signals:
- Competitors have raised prices
- Prospects don't flinch at price
- "It's so cheap!" feedback
Business signals:
- Very high conversion rates (>40%)
- Very low churn (<3% monthly)
- Strong unit economics
Product signals:
- Significant value added since last pricing
- Product more mature/stable
Price Increase Strategies
- Grandfather existing — New price for new customers only
- Delayed increase — Announce 3-6 months out
- Tied to value — Raise price but add features
- Plan restructure — Change plans entirely
Pricing Page Best Practices
Above the Fold
- Clear tier comparison table
- Recommended tier highlighted
- Monthly/annual toggle
- Primary CTA for each tier
Common Elements
- Feature comparison table
- Who each tier is for
- FAQ section
- Annual discount callout (17-20%)
- Money-back guarantee
- Customer logos/trust signals
Pricing Psychology
- Anchoring: Show higher-priced option first
- Decoy effect: Middle tier should be best value
- Charm pricing: $49 vs. $50 (for value-focused)
- Round pricing: $50 vs. $49 (for premium)
Pricing Checklist
Before Setting Prices
Pricing Structure
Task-Specific Questions
- What pricing research have you done?
- What's your current ARPU and conversion rate?
- What's your primary value metric?
- Who are your main pricing personas?
- Are you self-serve, sales-led, or hybrid?
- What pricing changes are you considering?
Related Skills
- churn-prevention: For cancel flows, save offers, and reducing revenue churn
- page-cro: For optimizing pricing page conversion
- copywriting: For pricing page copy
- marketing-psychology: For pricing psychology principles
- ab-test-setup: For testing pricing changes
- revops: For deal desk processes and pipeline pricing
- sales-enablement: For proposal templates and pricing presentations
