pricing-strategy

# Pricing Strategy

## Overview

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.

**Check for product marketing context first:**
If `.claude/product-marketing-context.md` exists, read it before asking questions. Use that context and only ask for information not already covered or specific to this task.

## Instructions

### Initial Context Gathering

Gather this context (ask if not provided):

1. **Business Context** - Product type (SaaS, marketplace, e-commerce, service)? Current pricing? Target market (SMB, mid-market, enterprise)? Go-to-market motion (self-serve, sales-led, hybrid)?
2. **Value & Competition** - Primary value delivered? Alternatives customers consider? How competitors price?
3. **Current Performance** - Conversion rate? ARPU and churn rate? Customer feedback on pricing?
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)
2. **Pricing Metric** - What you charge for (per user, per usage, flat fee)
3. **Price Point** - The actual dollar amounts (perceived value vs. cost)

**Value-Based Pricing:**
Price based on value delivered, not cost to serve. The customer's perceived value sets the ceiling. The next best alternative sets the floor. Your price goes between those two points.

### Value Metrics

The value metric is what you charge for. It should scale with the value customers receive.

| 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 |

Ask: "As a customer uses more of [metric], do they get more value?" If yes, it is a good value metric.

### Tier Structure

**Good-Better-Best Framework:**
- **Good (Entry):** Core features, limited usage, low price
- **Better (Recommended):** Full features, reasonable limits, anchor price
- **Best (Premium):** Everything, advanced features, 2-3x Better price

**Differentiate tiers by:** Feature gating, usage limits, support level (email to priority to dedicated), access (API, SSO, custom branding).

**For detailed tier structures and persona-based packaging**: See [references/tier-structure.md](references/tier-structure.md)

### Pricing Research

**Van Westendorp Method** - Four questions to identify acceptable price range:
1. Too expensive (wouldn't consider)
2. Too cheap (question quality)
3. Expensive but might consider
4. A bargain

Analyze intersections to find optimal pricing zone.

**MaxDiff Analysis** - Show sets of features, ask most/least important. Results inform tier packaging.

**For detailed research methods**: See [references/research-methods.md](references/research-methods.md)

### When to Raise Prices

**Signs it's time:** Competitors have raised prices, prospects don't flinch at price, very high conversion rates (>40%), very low churn (<3%), significant value added since last pricing.

**Strategies:** Grandfather existing customers, delayed increase (announce 3-6 months out), tied to value (raise price but add features), full plan restructure.

### Pricing Page Best Practices

- Clear tier comparison table with recommended tier highlighted
- Monthly/annual toggle with 17-20% annual discount callout
- Primary CTA for each tier, FAQ section, customer logos/trust signals
- **Psychology:** Anchoring (show higher first), decoy effect (middle tier best value), charm pricing ($49 vs $50 for value), round pricing ($50 vs $49 for premium)

### Pricing Checklist

**Before setting prices:** Define target personas, research competitor pricing, identify value metric, conduct willingness-to-pay research, map features to tiers.

**Pricing structure:** Choose number of tiers, differentiate clearly, set price points from research, create annual discount strategy, plan enterprise/custom tier.

## Examples

### Example 1: Pricing Strategy for a Project Management SaaS

**User prompt:** "We're launching a project management tool for marketing teams. We have 200 beta users on a free plan. Need to design our paid pricing before public launch."

The agent will gather context on the product's value metric and competitive landscape, then deliver:
- Recommended value metric analysis: per-seat pricing aligns best since more team members equals more value delivered
- Three-tier Good-Better-Best structure: Starter at $12/user/month (5 user minimum, basic boards and timelines), Pro at $24/user/month (unlimited users, automations, integrations, priority support), Enterprise at custom pricing (SSO, audit logs, dedicated CSM)
- Annual discount of 20% to incentivize commitment and reduce churn
- Competitive positioning analysis against Asana, Monday.com, and ClickUp
- Grandfather beta users on a lifetime 50% discount to reward early adopters and generate case studies
- Pricing page wireframe recommendations with the Pro tier highlighted as "Most Popular"

### Example 2: Price Increase Strategy for an Email Marketing Platform

**User prompt:** "We run an email marketing platform charging $29/month for up to 5,000 contacts. Our churn is 2.1% monthly and conversion rate is 48%. We've added AI subject line testing, advanced automations, and deliverability monitoring since the last price change 2 years ago. How should we raise prices?"

The agent will analyze the strong unit economics signals (high conversion, low churn) and recommend:
- Increase from $29 to $39/month for new customers, justified by 3 major feature additions
- Grandfather existing customers at $29 for 6 months, then move to $34 (partial increase)
- Communication plan: announce 90 days before change, frame around new AI features and value added
- Create a new lower-tier plan at $19/month with limited contacts and no AI features to capture price-sensitive segment
- A/B test the pricing page with new price points before full rollout
- Expected impact modeling: 10-15% conversion rate decrease offset by 34% revenue-per-customer increase

## Guidelines

- Always check `.claude/product-marketing-context.md` before asking discovery questions
- Base pricing recommendations on value delivered to customers, never on cost to serve
- Always recommend a value metric that scales with the value the customer receives
- Use the Good-Better-Best framework as the default tier structure unless the product clearly warrants a different approach
- Recommend pricing research (Van Westendorp or MaxDiff) before finalizing price points rather than guessing
- When recommending price increases, always include a communication strategy and a plan for existing customers
- Highlight the annual discount strategy as a churn reduction tool, not just a revenue tactic
- Avoid recommending more than 4 tiers as decision paralysis reduces conversion rates
- Always consider the go-to-market motion: self-serve products need simple transparent pricing, sales-led products can use custom enterprise pricing