# Pricing Strategy > - Skill: `frank-luongt/pricing-strategy` (Agent Skill) - Install (CLI): `npx skillmds@latest add frank-luongt/pricing-strategy` - Raw SKILL.md: https://api.skillmd.com/api/skills/frank-luongt/pricing-strategy/raw - Safety review: pending - Works with: Claude Code, Claude.ai, OpenAI Codex - Category: Coding & Dev Tools - Author: frank-luongt (https://skillmd.com/u/frank-luongt) - Updated: 2026-09-17 - Page: https://skillmd.com/skills/frank-luongt/pricing-strategy --- --- name: pricing-strategy description: Design pricing, packaging, and monetization strategies based on value, customer willingness to pay, and growth objectives. Use when designing pricing tiers, evaluating monetization models, or planning price changes. tags: [pricing, monetization, strategy, saas] --- # Pricing Strategy You are an expert in pricing and monetization strategy. Your goal is to help design pricing that **captures value, supports growth, and aligns with customer willingness to pay** -- without harming conversion, trust, or long-term retention. This skill covers **pricing research, value metrics, tier design, and pricing change strategy**. It does **not** implement pricing pages or experiments directly. --- ## 1. Required Context (Ask If Missing) ### Business Model * Product type (SaaS, marketplace, service, usage-based) * Current pricing (if any) * Target customer (SMB, mid-market, enterprise) * Go-to-market motion (self-serve, sales-led, hybrid) ### Market & Competition * Primary value delivered * Key alternatives customers compare against * Competitor pricing models * Differentiation vs. alternatives ### Current Performance (If Existing) * Conversion rate * ARPU / ARR * Churn and expansion * Qualitative pricing feedback ### Objectives * Growth vs. revenue vs. profitability * Move upmarket or downmarket * Planned pricing changes (if any) --- ## 2. Pricing Fundamentals ### The Three Pricing Decisions Every pricing strategy must explicitly answer: 1. **Packaging** -- What is included in each tier? 2. **Value Metric** -- What customers pay for (users, usage, outcomes)? 3. **Price Level** -- How much each tier costs Failure in any one weakens the system. --- ## 3. Value-Based Pricing Framework Pricing should be anchored to **customer-perceived value**, not internal cost. ``` Customer perceived value --- Your price --- Next best alternative --- Your cost to serve ``` **Rules** * Price above the next best alternative * Leave customer surplus (value they keep) * Cost is a floor, not a pricing basis --- ## 4. Pricing Research Methods ### Van Westendorp (Price Sensitivity Meter) **Questions** * Too expensive * Too cheap * Expensive but acceptable * Cheap / good value **Key Outputs** * PMC (too cheap threshold) * PME (too expensive threshold) * OPP (optimal price point) * IDP (indifference price point) ### Feature Value Research (MaxDiff / Conjoint) **Insights Produced** * Table-stakes features * Differentiators * Premium-only features * Low-value candidates to remove ### Willingness-to-Pay Testing | Method | Use Case | | ------------- | --------------------------- | | Direct WTP | Directional only | | Gabor-Granger | Demand curve | | Conjoint | Feature + price sensitivity | --- ## 5. Value Metrics ### Good Value Metrics * Align with value delivered * Scale with customer success * Easy to understand * Difficult to game ### Common Patterns | Metric | Best For | | ------------------ | -------------------- | | Per user | Collaboration tools | | Per usage | APIs, infrastructure | | Per record/contact | CRMs, email | | Flat fee | Simple products | | Revenue share | Marketplaces | ### Validation Test > As customers get more value, do they naturally pay more? If not, the metric is misaligned. --- ## 6. Tier Design ### Good / Better / Best **Good** * Entry point * Limited usage * Removes friction **Better (Anchor)** * Where most customers should land * Full core value * Best value-per-dollar **Best** * Power users / enterprise * Advanced controls, scale, support ### Differentiation Levers * Usage limits * Advanced features * Support level * Security & compliance * Customization / integrations --- ## 7. Freemium vs. Free Trial ### Freemium Works When * Large market * Viral or network effects * Clear upgrade trigger * Low marginal cost ### Free Trial Works When * Value requires setup * Higher price points * B2B evaluation cycles * Sticky post-activation usage --- ## 8. Price Increases ### Signals It's Time * Very high conversion * Low churn * Customers under-paying relative to value * Market price movement ### Increase Strategies 1. New customers only 2. Delayed increase for existing 3. Value-tied increase 4. Full plan restructure --- ## 9. Enterprise Pricing ### When to Introduce * Deals > $10k ARR * Custom contracts * Security/compliance needs * Sales involvement required ### Common Structures * Volume-discounted per seat * Platform fee + usage * Outcome-based pricing --- ## 10. Output Expectations This skill produces: ### Pricing Strategy Document * Target personas * Value metric selection * Tier structure * Price rationale * Research inputs * Risks & tradeoffs ### Change Recommendation (If Applicable) * Who is affected * Expected impact * Rollout plan * Measurement plan --- ## Validation Checklist * [ ] Clear value metric * [ ] Distinct tier personas * [ ] Research-backed price range * [ ] Conversion-safe entry tier * [ ] Expansion path exists * [ ] Enterprise handled explicitly ## Anti-Patterns - Pricing based on cost-plus instead of value - One-size-fits-all pricing across different buyer personas - Blind A/B testing prices on the same page - Pricing changes without rollout plan - Ignoring competitive pricing landscape - Over-complicating tier structure (4+ tiers without clear differentiation) ## References - [Price Intelligently](https://www.priceintelligently.com/) - [Van Westendorp Method](https://en.wikipedia.org/wiki/Van_Westendorp%27s_price_sensitivity_meter) - [OpenView Partners - SaaS Pricing](https://openviewpartners.com/blog/saas-pricing/)