Best PromptsPricing Strategy
Work out what to charge and how to package it: value basis, tier structure, the metric you meter on, and how to test before committing.
Help me set pricing for [PRODUCT/SERVICE]. What it does and who buys it: [PRODUCT + BUYER] The alternative if they do not buy: [COMPETITOR, IN-HOUSE, SPREADSHEET, DOING NOTHING] What that alternative costs them: [MONEY, TIME, RISK. Estimate if needed and say so.] Value we create, quantified if possible: [TIME SAVED, REVENUE GAINED, COST AVOIDED, RISK REDUCED] Our costs: [COST TO SERVE ONE CUSTOMER, INCLUDING SUPPORT AND INFRASTRUCTURE] Current pricing if any, and what we observe: [PRICE, WIN RATE, DISCOUNTING, CHURN, OBJECTIONS] Competitor pricing: [WHAT WE KNOW, AND HOW SURE WE ARE] Constraints: [e.g. "must stay under a $500 approval threshold", "channel partners take 20%"] Produce: 1. **Value basis.** The economic value we create per customer per year, built up from my numbers with the arithmetic shown. Then the share of that value it is reasonable to capture, and why. Mark every estimate as ESTIMATE with its source. 2. **The pricing metric.** What we charge per: seats, usage, outcomes, flat rate. Evaluate 2-3 candidates against three tests: does it grow as the customer gets more value, can the buyer predict their bill, and can we measure it without disputes. Recommend one. 3. **Tier structure.** 3 tiers with the price, the buyer each is for, and the specific feature or limit that makes someone move up. Name the one dimension that drives upgrades, since a tier boundary drawn on several dimensions at once confuses buyers into choosing nothing. 4. **Price points.** A recommended number for each tier, the reasoning, and the psychological anchoring at work. Note where a price crosses a buyer's approval threshold and what that does to the sales cycle. 5. **Margin check.** Gross margin per tier at my stated cost to serve. Flag any tier that loses money at expected usage. 6. **How to test before committing.** The cheapest way to get evidence: quoting the new price to a subset, a price page test, willingness-to-pay questions to ask on calls, or a grandfathering plan. Include what result would send you back to a different number. 7. **Migration plan** for existing customers, if we have any. Rules: separate what my data supports from what you are inferring. Do not state competitor prices as fact unless I supplied them. If my value numbers are too thin to price on value, say so and name the three questions to ask five customers this week.
How to use
The pricing metric matters more than the number and gets a fraction of the attention. A metric that scales with customer value makes every later price increase a non-event, while one that does not means renegotiating forever. Section 6 is what keeps this from being an expensive guess: pricing is unusually cheap to test on new customers only, and unusually expensive to get wrong across an installed base.
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