Pricing Strategy
Production-grade SaaS pricing framework covering the three pricing axes (value metric, packaging, price point), value-based pricing methodology, tier architecture, pricing research methods, pricing page design, price increase execution, and competitive pricing positioning. Pricing is positioning -- the right price communicates as much about your product as your marketing does.
Core Capabilities
- Three pricing axes (in order) — lock the value metric (how it scales), then packaging (what's in each tier), then test the price point (the number). Most teams skip to price point; that is backwards.
- Value metric & tier design — select a metric that scales with customer value and is hard to game; architect Good-Better-Best tiers with deliberate feature allocation and naming.
- Value-based pricing — price inside the corridor (above the next-best alternative, below perceived value), at 10-20% of documented value delivered.
- Pricing research — Van Westendorp, MaxDiff, competitor benchmarking, willingness-to-pay interviews.
- Pricing page, price increases & competition — page design (above/below fold, annual toggle), price-increase playbook (strategy, timeline, comms, impact), competitive positioning and health diagnostics.
Use when
- The user asks to "design pricing", "set prices", or "choose a value metric"
- Pricing tiers need to be restructured (Good-Better-Best, add/remove tiers, repackage features)
- A price increase is planned and needs execution design (strategy, timing, communication, grandfathering)
- Conversion on the pricing page is flat or declining
- Freemium vs free trial decision needs to be made, or the freemium tier is cannibalizing paid
- Competitor pricing shifts require a positioning response
- The user says "our pricing feels off" or asks for a pricing audit
Clarify First
Before designing the pricing, confirm these inputs. If any is unknown or vague, ASK — do not assume:
Stop rule: ask only the 2-3 that most change the output. If the user says "just draft it," proceed and list your assumptions at the top of the deliverable.
Operating Modes
- Mode 1 — Design From Scratch: No pricing exists or full rebuild needed. Work value metric → tier structure → price points → page design. Validate: value metric chosen before tier design; tiers locked before price points; price points tested against the corridor before page design.
- Mode 2 — Optimize Existing Pricing: Pricing exists but conversion is low, expansion flat, or customers feel mispriced. Audit, benchmark, find specific improvements. Validate: the diagnosis names a specific failure mode (e.g., "middle tier too narrow") before any change is proposed.
- Mode 3 — Price Increase: Prices need to go up without burning relationships. Validate: grandfather policy defined, communication window set (90+ days for annual customers), and expected churn modeled before the first notice.
References
Load the reference that matches the task — keep this file lean and pull detail on demand:
- references/pricing-models.md — the three pricing axes, value metric selection (table, criteria, red flags), tier architecture (Good-Better-Best, feature allocation, naming), and value-based pricing corridor. Read when designing or restructuring pricing.
- references/research-and-page-design.md — Van Westendorp, MaxDiff, competitor benchmarking, WTP interviews, pricing page design, and the freemium vs free trial decision. Read when researching willingness-to-pay or designing the page.
- references/price-increase-and-competitive.md — price increase strategy/timeline/comms/impact, competitive position map and positioning strategy, and pricing health signals. Read when raising prices or positioning against competitors.
- references/tools-and-diagnostics.md — output artifacts, the three Python scripts (analyzer, sensitivity calculator, increase modeler), troubleshooting table, success criteria, and anti-patterns. Read when producing deliverables, running tools, or debugging a pricing problem.
Scope & Limitations
In scope: Value metric selection, tier architecture design, price point research (Van Westendorp, competitor benchmarking, willingness-to-pay interviews), pricing page design specifications, price increase strategy and execution, freemium vs free trial decision frameworks, competitive pricing analysis and positioning, and pricing health diagnostics.
Out of scope: Pricing page visual design and CRO (use page-cro), in-app upgrade prompts and paywalls (use paywall-upgrade-cro), signup flow optimization after pricing page (use signup-flow-cro), churn intervention when churn is the root cause (use churn-prevention), and full competitive analysis beyond pricing (use competitive-teardown). Scripts do not integrate with billing systems (Stripe, Chargebee, etc.) or analytics platforms.
Limitations: Van Westendorp analysis requires minimum 30 survey respondents for statistical validity. Pricing benchmarks are based on aggregate SaaS industry data and vary significantly by vertical, company stage, and geography. Credit-based and usage-based pricing models (growing to 38% of SaaS in 2026) have different optimization dynamics than flat-rate or per-seat models. Price elasticity varies by customer segment -- enterprise buyers are less price-sensitive than SMB.
Integration Points
- page-cro -- Pricing page layout, CTA placement, and social proof design should follow page-cro best practices
- paywall-upgrade-cro -- In-app upgrade screens must reflect the same tier structure and messaging as the public pricing page
- competitive-teardown -- Competitive pricing data from teardowns feeds directly into pricing position map and tier design
- churn-prevention -- Churn analysis by price point and tier informs whether pricing is causing retention issues
- signup-flow-cro -- Signup flow design depends on pricing model (CC-required vs free trial vs freemium)
- revenue-operations -- GTM efficiency metrics (LTV:CAC, Magic Number) validate whether pricing supports unit economics
Related Skills
- page-cro -- Use for optimizing the pricing page conversion rate (layout, CTA, social proof). Not for pricing structure or tier design.
- churn-prevention -- Use when churn is the underlying issue. Fix retention before raising prices.
- competitive-teardown -- Use for comprehensive competitive analysis. Feed teardown pricing data into this skill.
- paywall-upgrade-cro -- Use for in-app upgrade prompts and paywalls. Different from public pricing page design.
- signup-flow-cro -- Use for optimizing the signup flow that follows pricing page conversion.
1---2name: pricing-strategy3description: SaaS pricing design and optimization covering value metric selection, tier architecture, price point research, pricing page design, price increase execution, and competitive pricing analysis.4license: MIT + Commons Clause5---6# Pricing Strategy
7
8Production-grade SaaS pricing framework covering the three pricing axes (value metric, packaging, price point), value-based pricing methodology, tier architecture, pricing research methods, pricing page design, price increase execution, and competitive pricing positioning. Pricing is positioning -- the right price communicates as much about your product as your marketing does.
9
10## Core Capabilities
11
12- **Three pricing axes (in order)** — lock the value metric (how it scales), then packaging (what's in each tier), then test the price point (the number). Most teams skip to price point; that is backwards.
13- **Value metric & tier design** — select a metric that scales with customer value and is hard to game; architect Good-Better-Best tiers with deliberate feature allocation and naming.
14- **Value-based pricing** — price inside the corridor (above the next-best alternative, below perceived value), at 10-20% of documented value delivered.
15- **Pricing research** — Van Westendorp, MaxDiff, competitor benchmarking, willingness-to-pay interviews.
16- **Pricing page, price increases & competition** — page design (above/below fold, annual toggle), price-increase playbook (strategy, timeline, comms, impact), competitive positioning and health diagnostics.
17
18## Use when
19
20- The user asks to "design pricing", "set prices", or "choose a value metric"
21- Pricing tiers need to be restructured (Good-Better-Best, add/remove tiers, repackage features)
22- A price increase is planned and needs execution design (strategy, timing, communication, grandfathering)
23- Conversion on the pricing page is flat or declining
24- Freemium vs free trial decision needs to be made, or the freemium tier is cannibalizing paid
25- Competitor pricing shifts require a positioning response
26- The user says "our pricing feels off" or asks for a pricing audit
27
28## Clarify First
29
30Before designing the pricing, confirm these inputs. If any is unknown or vague, ASK — do not assume:
31
32- [ ] **Operating mode** — design from scratch, optimize existing, or price increase (each has a different validation gate and workflow)
33- [ ] **Value metric** — how price scales (seats, usage, etc.) (must be locked before tiers and price points)
34- [ ] **Current pricing + the symptom** — existing tiers and the specific failure, e.g. "middle tier too narrow" (optimize mode needs a named failure mode before any change)
35- [ ] **Target segment + willingness-to-pay** — SMB vs enterprise price sensitivity (sets the value corridor and price points)
36
37Stop rule: ask only the 2-3 that most change the output. If the user says "just draft it," proceed and list your assumptions at the top of the deliverable.
38
39## Operating Modes
40
41- **Mode 1 — Design From Scratch:** No pricing exists or full rebuild needed. Work value metric → tier structure → price points → page design. *Validate:* value metric chosen before tier design; tiers locked before price points; price points tested against the corridor before page design.
42- **Mode 2 — Optimize Existing Pricing:** Pricing exists but conversion is low, expansion flat, or customers feel mispriced. Audit, benchmark, find specific improvements. *Validate:* the diagnosis names a specific failure mode (e.g., "middle tier too narrow") before any change is proposed.
43- **Mode 3 — Price Increase:** Prices need to go up without burning relationships. *Validate:* grandfather policy defined, communication window set (90+ days for annual customers), and expected churn modeled before the first notice.
44
45## References
46
47Load the reference that matches the task — keep this file lean and pull detail on demand:
48
49- **[references/pricing-models.md](references/pricing-models.md)** — the three pricing axes, value metric selection (table, criteria, red flags), tier architecture (Good-Better-Best, feature allocation, naming), and value-based pricing corridor. Read when designing or restructuring pricing.
50- **[references/research-and-page-design.md](references/research-and-page-design.md)** — Van Westendorp, MaxDiff, competitor benchmarking, WTP interviews, pricing page design, and the freemium vs free trial decision. Read when researching willingness-to-pay or designing the page.
51- **[references/price-increase-and-competitive.md](references/price-increase-and-competitive.md)** — price increase strategy/timeline/comms/impact, competitive position map and positioning strategy, and pricing health signals. Read when raising prices or positioning against competitors.
52- **[references/tools-and-diagnostics.md](references/tools-and-diagnostics.md)** — output artifacts, the three Python scripts (analyzer, sensitivity calculator, increase modeler), troubleshooting table, success criteria, and anti-patterns. Read when producing deliverables, running tools, or debugging a pricing problem.
53
54## Scope & Limitations
55
56**In scope:** Value metric selection, tier architecture design, price point research (Van Westendorp, competitor benchmarking, willingness-to-pay interviews), pricing page design specifications, price increase strategy and execution, freemium vs free trial decision frameworks, competitive pricing analysis and positioning, and pricing health diagnostics.
57
58**Out of scope:** Pricing page visual design and CRO (use page-cro), in-app upgrade prompts and paywalls (use paywall-upgrade-cro), signup flow optimization after pricing page (use signup-flow-cro), churn intervention when churn is the root cause (use churn-prevention), and full competitive analysis beyond pricing (use competitive-teardown). Scripts do not integrate with billing systems (Stripe, Chargebee, etc.) or analytics platforms.
59
60**Limitations:** Van Westendorp analysis requires minimum 30 survey respondents for statistical validity. Pricing benchmarks are based on aggregate SaaS industry data and vary significantly by vertical, company stage, and geography. Credit-based and usage-based pricing models (growing to 38% of SaaS in 2026) have different optimization dynamics than flat-rate or per-seat models. Price elasticity varies by customer segment -- enterprise buyers are less price-sensitive than SMB.
61
62## Integration Points
63
64- **page-cro** -- Pricing page layout, CTA placement, and social proof design should follow page-cro best practices
65- **paywall-upgrade-cro** -- In-app upgrade screens must reflect the same tier structure and messaging as the public pricing page
66- **competitive-teardown** -- Competitive pricing data from teardowns feeds directly into pricing position map and tier design
67- **churn-prevention** -- Churn analysis by price point and tier informs whether pricing is causing retention issues
68- **signup-flow-cro** -- Signup flow design depends on pricing model (CC-required vs free trial vs freemium)
69- **revenue-operations** -- GTM efficiency metrics (LTV:CAC, Magic Number) validate whether pricing supports unit economics
70
71## Related Skills
72
73- **page-cro** -- Use for optimizing the pricing page conversion rate (layout, CTA, social proof). Not for pricing structure or tier design.
74- **churn-prevention** -- Use when churn is the underlying issue. Fix retention before raising prices.
75- **competitive-teardown** -- Use for comprehensive competitive analysis. Feed teardown pricing data into this skill.
76- **paywall-upgrade-cro** -- Use for in-app upgrade prompts and paywalls. Different from public pricing page design.
77- **signup-flow-cro** -- Use for optimizing the signup flow that follows pricing page conversion.
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