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
Gather this context:
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 average revenue per user (ARPU)?
- What's your churn rate?
4. Goals
- Are you optimizing for growth, revenue, or profitability?
- Any pricing changes you're considering?
Pricing Fundamentals
The Three Pricing Axes
1. Packaging — What's included at each tier?
2. Pricing Metric — What do you charge for?
3. Price Point — How much do you charge?
Value-Based Pricing Framework
Price should be based on value delivered, not cost to serve.
Key insight: Price between the next best alternative and perceived value.
Value Metrics
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 |
Tier Structure
Good-Better-Best Framework
Good tier (Entry):
- Purpose: Remove barriers to entry
- Includes: Core features, limited usage
- Target: Small teams, try before buy
Better tier (Recommended):
- Purpose: Where most customers land
- Includes: Full features, reasonable limits
- Target: Growing teams, serious users
Best tier (Premium):
- Purpose: Capture high-value customers
- Includes: Everything, advanced features
- Target: Larger teams, power users
Tier Differentiation Strategies
Feature gating:
- Basic features in all tiers
- Advanced features in higher tiers
Usage limits:
- Same features, different limits
Support level:
- Email → Priority → Dedicated success
Access and customization:
- API access, SSO, custom branding
Freemium vs. Free Trial
When to Use Freemium
Freemium works when:
- Product has viral/network effects
- Free users provide value
- Large market where % conversion drives volume
- Low marginal cost to serve free users
When to Use Free Trial
Free trial works when:
- Product needs time to demonstrate value
- Onboarding/setup investment required
- B2B with buying committees
- Higher price points
Trial best practices:
- 7-14 days for simple products
- 14-30 days for complex products
- Full access (not feature-limited)
Pricing Psychology
- Anchoring: Show higher-priced option first
- Decoy effect: Middle tier should be obviously best value
- Charm pricing: $49 vs. $50 (for value-focused)
- Round pricing: $50 vs. $49 (for premium)
- Annual savings: Offer 17-20% discount for annual
Output Format
Pricing Recommendation
## Recommended Pricing Structure
### Tier 1: [Name] - $X/mo
- Target: [Who]
- Includes: [Features/limits]
### Tier 2: [Name] - $X/mo (Recommended)
- Target: [Who]
- Includes: [Features/limits]
### Tier 3: [Name] - $X/mo
- Target: [Who]
- Includes: [Features/limits]
## Rationale
[Why this structure]
## Implementation Notes
[Transition, communication, etc.]
Related Skills
- lp-optimizer: For optimizing pricing page conversion
- copywriting: For pricing page copy
- marketing-psychology: For pricing psychology principles
- ab-test-setup: For testing pricing changes
1---2name: pricing-strategy3description: 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,' or 'monetization.' This skill covers pricing research, tier structure, and packaging strategy.4---5
6# Pricing Strategy
7
8You 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.
9
10## Before Starting
11
12Gather this context:
13
14### 1. Business Context
15- What type of product? (SaaS, marketplace, e-commerce, service)
16- What's your current pricing (if any)?
17- What's your target market? (SMB, mid-market, enterprise)
18- What's your go-to-market motion? (self-serve, sales-led, hybrid)
19
20### 2. Value & Competition
21- What's the primary value you deliver?
22- What alternatives do customers consider?
23- How do competitors price?
24
25### 3. Current Performance
26- What's your current conversion rate?
27- What's your average revenue per user (ARPU)?
28- What's your churn rate?
29
30### 4. Goals
31- Are you optimizing for growth, revenue, or profitability?
32- Any pricing changes you're considering?
33
34---
35
36## Pricing Fundamentals
37
38### The Three Pricing Axes
39
40**1. Packaging** — What's included at each tier?
41**2. Pricing Metric** — What do you charge for?
42**3. Price Point** — How much do you charge?
43
44### Value-Based Pricing Framework
45
46Price should be based on value delivered, not cost to serve.
47
48**Key insight:** Price between the next best alternative and perceived value.
49
50---
51
52## Value Metrics
53
54The value metric is what you charge for—it should scale with the value customers receive.
55
56**Good value metrics:**
57- Align price with value delivered
58- Are easy to understand
59- Scale as customer grows
60- Are hard to game
61
62### Common Value Metrics
63
64| Metric | Best For | Example |
65|--------|----------|---------|
66| Per user/seat | Collaboration tools | Slack, Notion |
67| Per usage | Variable consumption | AWS, Twilio |
68| Per feature | Modular products | HubSpot add-ons |
69| Per contact/record | CRM, email tools | Mailchimp |
70| Per transaction | Payments, marketplaces | Stripe |
71| Flat fee | Simple products | Basecamp |
72
73---
74
75## Tier Structure
76
77### Good-Better-Best Framework
78
79**Good tier (Entry):**
80- Purpose: Remove barriers to entry
81- Includes: Core features, limited usage
82- Target: Small teams, try before buy
83
84**Better tier (Recommended):**
85- Purpose: Where most customers land
86- Includes: Full features, reasonable limits
87- Target: Growing teams, serious users
88
89**Best tier (Premium):**
90- Purpose: Capture high-value customers
91- Includes: Everything, advanced features
92- Target: Larger teams, power users
93
94### Tier Differentiation Strategies
95
96**Feature gating:**
97- Basic features in all tiers
98- Advanced features in higher tiers
99
100**Usage limits:**
101- Same features, different limits
102
103**Support level:**
104- Email → Priority → Dedicated success
105
106**Access and customization:**
107- API access, SSO, custom branding
108
109---
110
111## Freemium vs. Free Trial
112
113### When to Use Freemium
114
115**Freemium works when:**
116- Product has viral/network effects
117- Free users provide value
118- Large market where % conversion drives volume
119- Low marginal cost to serve free users
120
121### When to Use Free Trial
122
123**Free trial works when:**
124- Product needs time to demonstrate value
125- Onboarding/setup investment required
126- B2B with buying committees
127- Higher price points
128
129**Trial best practices:**
130- 7-14 days for simple products
131- 14-30 days for complex products
132- Full access (not feature-limited)
133
134---
135
136## Pricing Psychology
137
138- **Anchoring:** Show higher-priced option first
139- **Decoy effect:** Middle tier should be obviously best value
140- **Charm pricing:** $49 vs. $50 (for value-focused)
141- **Round pricing:** $50 vs. $49 (for premium)
142- **Annual savings:** Offer 17-20% discount for annual
143
144---
145
146## Output Format
147
148### Pricing Recommendation
149
150```
151## Recommended Pricing Structure
152
153### Tier 1: [Name] - $X/mo
154- Target: [Who]
155- Includes: [Features/limits]
156
157### Tier 2: [Name] - $X/mo (Recommended)
158- Target: [Who]
159- Includes: [Features/limits]
160
161### Tier 3: [Name] - $X/mo
162- Target: [Who]
163- Includes: [Features/limits]
164
165## Rationale
166[Why this structure]
167
168## Implementation Notes
169[Transition, communication, etc.]
170```
171
172---
173
174## Related Skills
175
176- **lp-optimizer**: For optimizing pricing page conversion
177- **copywriting**: For pricing page copy
178- **marketing-psychology**: For pricing psychology principles
179- **ab-test-setup**: For testing pricing changes
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