17-pricing-strategy-global

name	17-pricing-strategy-global
description	Use when a price has to be set or changed — value-based pricing, anchoring, charm pricing, decoy tiers, good-better-best packaging, discount policy, and margin math, with currency psychology for US, EU, SEA, and LATAM plus dropshipping markup and BE-ROAS. Trigger on 'pricing strategy', 'how much should I charge', 'should I raise prices', 'price tiers', 'customers say it is too expensive', 'dropshipping markup'. Also use when the product is not selling and the user suspects price is the reason. Not for — bonuses, guarantee, and value stack around the price, see `31-offer-design-global`; persuasion beyond price, see `16-marketing-psychology-global`; ad budget math, see `10-reverse-kpi-global`.
metadata	{"version":"1.0.1","category":"strategy"}
license	MIT
triggers	["pricing strategy","price positioning","charm pricing","pricing psychology","dropshipping markup"]
related	["product-marketing-context-global","16-marketing-psychology-global","29-dropshipping-mastery-global","references/global-currency-pricing"]

Pricing Strategy (Global)

Price is the most leveraged decision in marketing. A 1% price increase typically yields a 10%+ profit improvement (Bain). Currency psychology, decimal conventions, and installment culture differ HUGELY by region.

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For newbies

Who is this skill for?

Audience	Concrete example
Founder setting initial pricing	First product launch, no historical data
DTC brand optimizing pricing page	Already selling, want to lift conversion or margin
SaaS deciding tier structure	Free / Pro / Enterprise; monthly vs annual
Dropshipper calculating markup	Importing from supplier, selling DTC
Service business packaging offers	Coaching, consulting, agency retainers

Who is this NOT for?

• Vietnam-only pricing -> Use 17-pricing-strategy (VN skill) — covers VND psychology
• Already at scale with strong data team -> You probably have proprietary models; this skill gives you starting frameworks

30-second pre-read

This skill produces ONE pricing strategy file with 7 components: pricing model selection, price ladder design (3-5 tiers), charm/anchor/decoy mechanics, break-even analysis, competitor benchmarking, A/B test plan, and pricing page layout. Pick 1 of 4 region variants — the variant tunes currency formatting, decimal convention, charm pricing styles, and installment culture.

3 common errors

1. Using US charm pricing in EU -> EU shoppers see $9.99 as "American" not "low" — feels foreign
2. Ignoring installment culture in LATAM -> "BRL 1,200 to MXN 8,000" pricing flops without "12x R$100" or "8 cuotas sin intereses"
3. Underpricing dropship products -> 2x markup leaves no room for ad spend; need 3-5x minimum

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Why do you need this skill?

Without pricing strategy:

• Charm formatting wrong for region -> "feels off" -> conversion drop
• No anchor -> middle tier doesn't feel like value -> wrong tier wins
• No installment option in LATAM -> abandoned cart 60%+
• Dropship markup too thin -> can't afford ads -> stalls
• No charm psychology in B2C -> leaving money on the table

Pick the right region defaults, apply proven frameworks, layer on dropshipping math when relevant.

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Workflow

Step 0: Check global context file
    |-- exists -> read product / customer / region info
    |-- missing -> suggest user run product-marketing-context-global first
Step 1: Pick region variant (US / EU / SEA / LATAM)
Step 2: Choose pricing model (One-time / Subscription / Tiered / Bundle / Freemium / Pay-as-you-go)
Step 3: If dropshipping product -> apply markup math (this file, see below)
Step 4: Design price ladder (3-tier with charm + anchor + decoy)
Step 5: Calculate break-even
Step 6: Compare with 2-3 competitors
Step 7: Write pricing page copy + A/B test plan

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Step 0: Check global context

Check .agents/product-marketing-context-global.md:

• Yes -> Read product, customer, region. Do NOT re-ask.
• No -> Suggest running product-marketing-context-global first.

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Step 1: Pick region variant

Ask: "Which is your PRIMARY region: US, EU, SEA, or LATAM?"

Where do you primarily sell?
    |-- US / Canada            --> 01-us.md    (USD, charm $9.99, monthly subs)
    |-- EU / EEA / UK          --> 02-eu.md    (EUR, charm EUR 9,99, VAT-inclusive)
    |-- Southeast Asia         --> 03-sea.md   (SGD/MYR/IDR/THB/PHP, discount-heavy)
    |-- Latin America          --> 04-latam.md (BRL/MXN/ARS, parcelado / cuotas common)
    |-- Vietnam only           --> Use `17-pricing-strategy` (VN skill)

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Step 2: Pricing models

Model	Best for	Examples
One-time	Physical products, courses	T-shirt, ebook, lifetime license
Subscription	Recurring value, software	SaaS, streaming, gym, supplement
Tiered	Differentiated buyers	SaaS Free/Pro/Enterprise
Bundle	Bigger AOV, perceived savings	Spa package, software bundle
Freemium	Large funnel, low conversion	Slack, Zoom, Notion
Pay-as-you-go	Variable usage	Cloud, API, AWS
Hybrid	Combination of models	Subscription + add-on usage credits

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Step 3: DROPSHIPPING MARKUP MATH (CRITICAL)

This section applies only if you're sourcing products from suppliers (AliExpress, Spocket, CJDropshipping, etc.) and reselling DTC.

The 3-5x markup rule

Dropshipping requires HIGH markup because:

• Ad spend is ~40-60% of revenue (paid acquisition is your only growth channel)
• Returns/refunds: 5-10% loss
• Payment processing: 2-3% per transaction
• Platform fees (Shopify): 1-2%
• Customs/duties (if cross-border): 5-15%

If your markup is only 2x cost, you have ZERO budget for ads. You need 3-5x minimum.

The math

Cost from supplier:    USD 5.00
Shipping to customer:  USD 3.00
Total cost:            USD 8.00

Sale price:            USD 29.99 (3.75x markup)

Revenue:               USD 29.99
- Cost                 USD 8.00
- Payment processing  USD 0.90 (3%)
- Platform fee         USD 0.30 (1%)
= Gross profit         USD 20.79
= Gross margin         69.3%

Of that USD 20.79 gross profit:
- Ad spend cap         USD 14.55 (70% of profit)
- Operations           USD 2.08 (10%)
- Net profit           USD 4.16 (~14% net margin)

Break-Even ROAS (BE-ROAS) formula

BE-ROAS = 1 / (1 - cost/sale_price)

Example:
- Cost USD 8, sale USD 29.99
- cost/sale = 0.267
- BE-ROAS = 1 / (1 - 0.267) = 1 / 0.733 = 1.36x

Translation: Your ads must return AT LEAST USD 1.36 for every USD 1 spent
just to break even. Profitable target: 2.5x or higher.

Markup tiers by product price

Product cost	Recommended markup	Sale price	BE-ROAS	Profit ROAS target
< USD 5	5-10x	USD 25-49.99	1.25x	2.5x
USD 5-15	4-5x	USD 49-79	1.40x	2.7x
USD 15-30	3-4x	USD 79-129	1.55x	3.0x
USD 30-60	2.5-3x	USD 129-199	1.75x	3.2x
USD 60+	2-2.5x	USD 199+	2.0x	3.5x

The dropshipping price ladder

Free shipping threshold:  USD 50  (push AOV up)
Lead-in product:          USD 19.99 (small impulse buy, charm)
Core product:             USD 39.99 (target sale, charm)
Premium variant:          USD 79.99 (anchor + upsell)
Bundle:                   USD 99.99 (3 products, "save 25%")

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Step 4: Design price ladder (universal — non-dropship)

Standard 3-tier structure

Goi 1 - Basic / Starter:    [low charm price]   - 3-4 features  - "Try free"
Goi 2 - Pro / Standard:     [middle anchor]     - 7-8 features  - "Most popular" badge
Goi 3 - Premium / Enterprise: [high price]      - All features  - "Contact sales"

Charm pricing (apply per region — see variants)

• US: $9.99 $29 $99
• EU: EUR 9,99 EUR 29 EUR 99
• SEA: S$9.90 RM39 Rp 99,000
• LATAM: R$ 99 MX$199 12x R$ 33 (parcelado)

Anchor effect

Goi Premium:  USD 199  (anchor — rarely sold)
Goi Pro:      USD 99   (target — 60-70% choose)
Goi Basic:    USD 29   (entry — price-sensitive)

Decoy effect (3-option trap)

A. Digital only:        USD 50  (poor value)
B. Physical only:       USD 120 (decoy - close to C, less value)
C. Digital + Physical:  USD 130 (target - "+USD 10 gets BOTH")

Add decoy B -> ~3x lift in choosing C vs. without decoy.

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Step 5: Break-even analysis

Break-even units = Fixed costs / (Price per unit - Variable cost per unit)

Example:
- Fixed costs:        USD 30,000/month
- Sale price:         USD 99
- Variable cost:      USD 39 (cost + shipping + processing)
- Contribution:       USD 60
- Break-even:         500 units / month

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Step 6: Competitor benchmarking

Compare with 2-3 direct competitors:

| Competitor | Their price | Their feature | Your price | Your feature |
|------------|-------------|--------------|------------|--------------|
| Comp A     | USD 89      | [feature]    | USD 99     | + extra      |
| Comp B     | USD 129     | [feature]    | USD 99     | + extra      |
| Comp C     | USD 79      | [feature]    | USD 99     | premium tier |

Pricing positioning vs. competitors

• Premium (+20% or more above): Justify with quality/result/brand
• Parity (within +/- 10%): Win with feature/service/UX differentiation
• Value (-15-25% below): Win with operational efficiency, not loss-leading

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Step 7: Pricing page + A/B test plan

Pricing page must-haves

Element	Why
3 tiers (not 1, not 4+)	Easy comparison; 3 is the sweet spot
Highlight middle tier	Anchor + decoy effect
Monthly / Annual toggle	Annual locks in cash; -15-20% discount
Feature comparison table	Decision support
FAQ	Address pricing objections
Customer testimonial	Social proof
Trial / refund policy	Risk reduction
Visible price (B2C)	"Contact sales" kills B2C conversion

A/B test priority

1. Price level (e.g. USD 29 vs. USD 39 — biggest impact)
2. Charm format (USD 29 vs. USD 29.99)
3. Tier structure (2 vs. 3 tiers)
4. Annual discount % (15% vs. 20% vs. 25%)
5. CTA copy ("Start free" vs. "Try Pro free")

Run each test for 2 weeks minimum, 95% confidence.

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Output template

# Pricing Strategy - [Brand]
Region variant: [US / EU / SEA / LATAM]
Currency: [USD / EUR / etc.]
Date: [YYYY-MM-DD]

## 1. Pricing model
[One-time / Subscription / Tiered / Bundle / Freemium / Pay-as-you-go]

## 2. Price ladder

| Tier | Price | Target buyer | Features | CTA |
|------|-------|--------------|----------|-----|
| Basic | X | Price-sensitive | [...] | "Try free" |
| Pro | Y | Target buyer | [...] | "Most popular" |
| Premium | Z | Anchor + premium | [...] | "Contact sales" |

## 3. Charm / anchor / decoy mechanics
- Charm: [region-appropriate format]
- Anchor: [premium tier explanation]
- Decoy: [if used]

## 4. Dropshipping markup (if applicable)
- Cost: USD X
- Sale: USD Y
- Markup: Nx
- BE-ROAS: 1.Xx
- Target ROAS: 2.Xx

## 5. Break-even
[Formula + monthly target]

## 6. Competitor positioning
[Premium / Parity / Value]

## 7. Pricing page layout
[3 tiers + comparison + FAQ + testimonial]

## 8. A/B test plan
[Test 1, Test 2, Test 3 with metrics]

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Quality checklist

• Region variant chosen + currency formatted correctly
• 3 tiers (not 1, not 4+)
• Middle tier highlighted (anchor + decoy)
• Charm pricing applied per region convention
• If dropshipping: markup >= 3x cost, BE-ROAS calculated
• Break-even units / month documented
• 2-3 competitors compared
• Pricing page mockup or wireframe
• A/B test plan with success metric
• Installment / financing option for LATAM/SEA where relevant

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Related skills

• product-marketing-context-global — foundation
• 16-marketing-psychology-global — anchoring, scarcity, framing
• 29-dropshipping-mastery-global — for dropshipping deep-dive (when available)
• references/global-currency-pricing — deep currency reference

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Global Skill 17 (Pricing Strategy) | Over Powers Agency | v1.0.0