Pricing StrategyPrompt.

Act as an experienced pricing strategist, commercial analyst and business decision advisor.

TASK:
Develop a practical pricing strategy for the product or service below.

The goal is to identify a pricing approach that balances customer value, business economics, market positioning, competitiveness and long-term sustainability.

Do not invent competitor prices, customer willingness-to-pay, market averages, margins, costs, conversion rates or demand elasticity.

Clearly distinguish between:

- confirmed inputs
- calculated values
- assumptions
- hypotheses
- information that still requires validation

BUSINESS:
[Business / brand name.]

PRODUCT / SERVICE:
[Describe what is being sold.]

CUSTOMER:
[Target customer or segment.]

MARKET:
[Country / region / industry.]

BUSINESS MODEL:
[One-time sale / subscription / service / project / usage-based / marketplace / other.]

CURRENT PRICE:
[If applicable.]

CURRENT PRICING MODEL:
[Flat rate / tiered / per user / per unit / hourly / project-based / other.]

CURRENCY:
[Currency.]

DIRECT COST PER UNIT / SALE:
[If known.]

FIXED COSTS:
[Monthly or annual if relevant.]

VARIABLE COSTS:
[Payment fees, delivery, support, hosting, commission, labor, etc.]

TARGET MARGIN:
[If known.]

SALES VOLUME:
[Current or expected, only if known.]

COMPETITOR INFORMATION:
[Known prices, plans, positioning or alternatives.]

CUSTOMER VALUE:
[What outcome or benefit does the customer receive?]

CUSTOMER PAIN POINTS:
[What problem is being solved?]

BUYING CRITERIA:
[Price, quality, convenience, speed, support, etc.]

KNOWN PRICE OBJECTIONS:
[If any.]

DISCOUNTS CURRENTLY USED:
[If any.]

SALES CHANNEL:
[Website / marketplace / direct sales / retail / distributor / other.]

POSITIONING:
[Budget / value / mid-market / premium / specialist / other.]

BUSINESS GOAL:
[Growth / profit / adoption / market entry / retention / upsell / other.]

SPECIAL REQUIREMENTS:
[Any additional instructions.]

PRICING ANALYSIS REQUIREMENTS:

1. REVIEW THE INPUT QUALITY
Classify the information into:

CONFIRMED
Directly provided or supported.

CALCULATED
Derived mathematically from confirmed inputs.

ASSUMED
Required for analysis but not verified.

UNKNOWN
Important information that is missing.

Do not hide missing information behind confident recommendations.

2. DEFINE THE PRICING OBJECTIVE
Determine the main objective.

Possible objectives include:

- maximize contribution margin
- increase adoption
- improve profitability
- support premium positioning
- gain market entry
- improve retention
- increase average order value
- improve upsell
- simplify purchasing

If several objectives conflict, identify the trade-off.

3. UNDERSTAND THE CUSTOMER VALUE
Identify:

Functional value
Time savings
Cost savings
Risk reduction
Revenue improvement
Convenience
Quality improvement
Professional value

Only include benefits supported by the supplied information.

4. DEFINE THE UNIT OF VALUE
Determine what the customer is actually paying for.

Examples:

Per unit
Per order
Per user
Per location
Per project
Per month
Per transaction
Per usage level
Per outcome

Recommend the unit that most closely aligns price with customer value where practical.

5. ANALYZE COST STRUCTURE
Separate:

Fixed costs
Variable costs
Direct costs
Transaction costs
Support costs
Fulfillment costs
Sales commissions

Do not invent missing costs.

6. CALCULATE UNIT ECONOMICS
Where data allows, calculate:

Selling price
Variable cost
Contribution per sale
Contribution margin %
Gross margin where appropriate

Use:

Contribution = Price - Variable Cost

Contribution Margin % =
Contribution / Price × 100

Show formulas and inputs.

7. BREAK-EVEN ANALYSIS
If fixed and variable costs are supplied, calculate:

Break-even units =
Fixed Costs / Contribution per Unit

Clearly state assumptions.

Do not calculate break-even if the required inputs are missing.

8. IDENTIFY THE PRICE FLOOR
Estimate a commercial price floor based on known economics.

Distinguish:

Absolute cost floor
Sustainable commercial floor
Strategic promotional price

A price above variable cost is not automatically sustainable.

9. ANALYZE POSITIONING
Assess whether the intended position is:

Budget
Value
Mid-market
Premium
Specialist

Explain what the pricing must communicate to support that position.

10. ANALYZE ALTERNATIVES
Customers may compare the offer against:

Direct competitor
Manual process
Internal employee
Freelancer
Spreadsheet
Free tool
Existing supplier
Doing nothing

Do not assume only direct competitors matter.

11. COMPETITOR PRICING
Use competitor information only when supplied or verifiable.

Do not invent competitor prices.

If data is missing, specify exactly what should be researched.

12. COMPETITOR PRICE COMPARISON
Where data exists, compare:

Entry price
Core plan
Premium plan
Pricing unit
Contract requirement
Included features
Limits
Add-ons
Discount structure

Focus on meaningful differences, not price alone.

13. AVOID AUTOMATIC UNDERCUTTING
Do not recommend a lower price simply because competitors are cheaper.

Evaluate:

Value difference
Service level
Quality
Risk
Convenience
Brand position
Support
Features
Switching costs

14. CUSTOMER PRICE SENSITIVITY
Assess only from available evidence.

Possible signals:

Frequent discount requests
High comparison behavior
Price objections
Low switching cost
Commodity-like offer
High differentiation
High urgency
High business impact

Do not invent elasticity.

15. WILLINGNESS TO PAY
Do not fabricate a willingness-to-pay number.

If unknown, propose methods to test it.

16. IDENTIFY VALUE METRICS
For recurring or scalable products, determine whether pricing could align with:

Users
Usage
Transactions
Locations
Revenue
Storage
Volume
Projects
Features

Explain pros and cons.

17. REVIEW CURRENT PRICING MODEL
Assess whether the current model is:

Easy to understand
Easy to compare
Aligned with value
Predictable
Scalable
Profitable
Operationally manageable

18. FLAT-RATE PRICING
Evaluate flat pricing when:

Customer needs are similar
Usage variation is low
Simplicity is important

Highlight risks where high-usage customers create disproportionate cost.

19. TIERED PRICING
If relevant, propose:

Entry
Core
Premium

Each tier should have a clear customer type and value difference.

Do not create arbitrary feature limits.

20. GOOD-BETTER-BEST STRUCTURE
Where appropriate:

Good:
Basic need.

Better:
Most common use case.

Best:
Higher-value or advanced need.

Avoid creating a weak entry tier solely to manipulate customers upward.

21. FEATURE-BASED PRICING
Use only when features genuinely represent different levels of value.

Do not unnecessarily hide essential functionality behind expensive tiers.

22. USAGE-BASED PRICING
Assess:

Customer predictability
Revenue predictability
Usage measurement
Cost alignment
Billing complexity

23. PER-USER PRICING
Assess whether additional users create additional value.

Consider whether per-user pricing could discourage adoption.

24. PROJECT PRICING
For services consider:

Scope
Complexity
Time
Risk
Expertise
Deliverables
Revision requirements
Customer value

Do not base price only on hours if value and risk materially differ.

25. HOURLY PRICING
Explain when hourly pricing is appropriate and when it may create misaligned incentives.

26. VALUE-BASED PRICING
Where sufficient evidence exists, assess the economic value created.

Do not automatically charge a fixed percentage of claimed value.

Use value as one pricing input, not fabricated certainty.

27. SUBSCRIPTION PRICING
For subscriptions evaluate:

Monthly
Annual
Minimum commitment
Cancellation flexibility
Onboarding cost
Ongoing service cost

28. ANNUAL DISCOUNTS
If recommending an annual discount, calculate the economic effect.

Example:

Monthly price × 12 = annual list value.

Compare proposed annual price against that value.

Do not select a discount percentage without explaining the reason.

29. DISCOUNT STRATEGY
Classify discounts by purpose:

Acquisition
Volume
Commitment
Seasonal
Retention
Channel
Promotional

Avoid permanent discounting without a strategic reason.

30. DISCOUNT RISK
Evaluate:

Margin erosion
Customer conditioning
Brand dilution
Channel conflict
Existing customer fairness
Price anchoring

31. VOLUME DISCOUNTS
Only recommend volume discounts where increased volume creates economic or strategic benefit.

Calculate the margin effect.

32. BUNDLING
Assess whether bundling:

Increases customer value
Improves adoption
Reduces sales friction
Moves low-use products
Creates confusion

33. ADD-ONS
Identify features or services that may be better sold separately.

Examples:

Premium support
Setup
Training
Customization
Delivery
Priority service

34. FREE TIER
If relevant, analyze:

Acquisition benefit
Conversion path
Support cost
Abuse risk
Feature boundary
Customer value

Do not recommend free simply because competitors offer it.

35. FREE TRIAL
Assess:

Trial length
Time-to-value
Activation requirements
Conversion point

Do not invent an ideal duration without product context.

36. FREEMIUM VS TRIAL
Explain which may fit better based on:

Usage frequency
Time-to-value
Cost to serve
Product complexity
Network effect
Customer urgency

37. INTRODUCTORY PRICING
If entering a market, assess temporary launch pricing separately from long-term pricing.

Define:

Start price
Duration
Exit condition
Target permanent price

Avoid an unclear "temporary" discount with no exit plan.

38. PRICE ANCHORING
Where appropriate, structure pricing so customers understand relative value.

Do not create deceptive anchors.

39. DECOY PRICING
Do not recommend manipulative or deliberately poor-value plans merely to push customers toward another option.

40. ODD / CHARM PRICING
Assess whether prices such as 9.99 suit the market and brand.

Premium or B2B offers may benefit more from simpler pricing.

41. ROUND PRICING
Consider round pricing where clarity and professionalism matter.

42. PSYCHOLOGICAL PRICING
Use cautiously.

Customer trust and transparency should take priority over gimmicks.

43. PRICE TRANSPARENCY
Assess whether prices should be:

Public
Starting from
Quote-based
Configured

Explain the sales implications.

44. QUOTE-BASED PRICING
Use where scope or customer requirements vary significantly.

Avoid quote-only pricing when customers need a simple standardized purchase.

45. MINIMUM ORDER / MINIMUM FEE
Where fixed transaction or setup costs are significant, evaluate a minimum charge.

46. SETUP FEES
Assess whether onboarding or implementation creates real one-time cost.

Do not add fees without customer value or cost justification.

47. SHIPPING / DELIVERY
For physical products, determine whether delivery should be:

Included
Separate
Free above threshold

Model the economics where data exists.

48. TAXES AND FEES
Clearly separate prices before and after tax where relevant.

Do not provide jurisdiction-specific tax advice without reliable information.

49. SALES CHANNEL EFFECT
Analyze whether pricing must account for:

Marketplace commission
Distributor margin
Reseller margin
Affiliate fee
Payment processing
Retail markup

50. CHANNEL CONFLICT
Identify risks where direct and partner prices differ.

51. CUSTOMER ACQUISITION ECONOMICS
If acquisition cost is known, consider:

CAC
Gross contribution
Payback period

Do not invent CAC.

52. CUSTOMER LIFETIME VALUE
Calculate only when retention, purchase frequency and margin inputs are available.

Do not fabricate LTV.

53. PROFITABILITY SCENARIOS
Where data allows, model:

Lower-price scenario
Base scenario
Higher-price scenario

For each show:

Price
Volume assumption
Revenue
Variable cost
Contribution

Clearly mark volume changes as assumptions.

54. DO NOT ASSUME LOWER PRICE = HIGHER SALES
State explicitly when demand response is unknown.

Do not use fabricated conversion improvements.

55. PRICE INCREASE ANALYSIS
If considering a price increase, assess:

Margin improvement
Potential churn
Customer communication
Existing customer treatment
Contract restrictions
Competitor context

56. GRANDFATHERING
Consider whether current customers should retain old pricing temporarily.

Explain benefits and risks.

57. PRICE DECREASE ANALYSIS
Evaluate whether a lower price:

Improves accessibility
Damages positioning
Requires unrealistic volume
Reduces contribution
Triggers competitor response

58. BREAK-EVEN VOLUME AFTER PRICE CHANGE
When possible calculate how much sales volume must change to maintain total contribution.

For current:

Contribution_old = Price_old - VariableCost

For new:

Contribution_new = Price_new - VariableCost

Required new volume =
Old total contribution / Contribution_new

59. CANNIBALIZATION
For tiers or bundles, assess whether customers may downgrade from higher-value offers.

60. UPSELL PATH
Design a logical path based on increasing customer need.

Do not restrict ordinary use merely to force upgrades.

61. CROSS-SELL OPPORTUNITY
Where appropriate, identify complementary products or services separately from core pricing.

62. CONTRACT LENGTH
For B2B or subscriptions assess:

Monthly
Annual
Multi-year

Consider price certainty, customer risk and business predictability.

63. PAYMENT TERMS
Where relevant assess:

Upfront
Deposit
Milestone
Net terms
Recurring billing

Consider cash-flow implications.

64. REFUNDS / GUARANTEES
Assess how refund or guarantee policies influence perceived purchase risk.

Do not recommend guarantees the business cannot honor.

65. PREMIUM POSITIONING
If pricing above alternatives, explain the proof required.

Examples:

Better outcome
Service
Quality
Speed
Expertise
Convenience
Reliability

66. BUDGET POSITIONING
If pricing lower, explain how the business will preserve margin and customer trust.

Avoid appearing low-quality by accident.

67. PRICE COMMUNICATION
Create a simple explanation of:

What the customer pays
What is included
What is excluded
Billing frequency
Optional charges

68. VALUE COMMUNICATION
Explain price alongside outcomes, not just features.

Do not exaggerate ROI.

69. PRICE OBJECTION HANDLING
For common objections provide:

Objection
Likely concern
Clarifying question
Relevant evidence
Professional response

Do not pressure or manipulate customers.

70. "TOO EXPENSIVE"
Do not automatically discount.

First determine whether the issue is:

Budget
Value perception
Comparison
Timing
Authority
Cash flow
Poor fit

71. NEGOTIATION GUIDELINES
If relevant establish:

Target price
Preferred terms
Minimum acceptable economics
Items that can be traded
Items that should not be discounted

Do not invent limits.

72. DISCOUNT APPROVAL
For teams, recommend clear authority and approval rules where frequent negotiation exists.

73. PRICING GOVERNANCE
For growing businesses identify:

Who owns pricing
Who approves changes
How often it is reviewed
How exceptions are recorded

74. TESTING PRICE
Suggest ethical testing approaches such as:

Customer interviews
Sales conversations
Offer testing
Landing-page testing
Quote analysis
Cohort comparison

Ensure actual customers are treated fairly.

75. VAN WESTENDORP
Where appropriate explain the four pricing questions:

Too cheap
Cheap / good value
Expensive
Too expensive

Treat results as research input, not a definitive price.

76. GABOR-GRANGER
Where appropriate suggest testing purchase likelihood at multiple prices.

Do not create fake responses.

77. CONJOINT ANALYSIS
Mention only when product features and pricing trade-offs justify more advanced research.

78. SALES DATA ANALYSIS
If historical transaction data exists, review:

Price paid
Discount
Volume
Segment
Conversion
Renewal
Churn

79. WIN / LOSS ANALYSIS
Where available examine whether price was genuinely the reason deals were won or lost.

Do not assume every lost sale was due to price.

80. REVIEW CUSTOMER FEEDBACK
Separate comments about:

Absolute price
Value
Affordability
Competitor comparison
Pricing complexity

81. SEGMENT PRICING
If different customer segments receive different pricing, ensure differences relate to legitimate value, cost or commercial structure.

Avoid unfair or discriminatory practices.

82. GEOGRAPHIC PRICING
Where relevant assess:

Currency
Purchasing context
Local competition
Taxes
Distribution cost

Do not invent local market prices.

83. CURRENCY RISK
For international sales, identify exposure to exchange-rate changes where relevant.

84. INFLATION / COST INCREASES
If costs change over time, identify a pricing review mechanism.

85. PRICE REVIEW TRIGGERS
Examples:

Cost increase
Product improvement
Competitor change
Demand change
Capacity constraint
New segment
Margin decline

86. KPI FRAMEWORK
Possible pricing KPIs:

Average selling price
Discount rate
Contribution margin
Gross margin
Conversion rate
ARPU
Upgrade rate
Churn
Revenue per customer

Only select metrics relevant to the model.

87. BASELINE
Use current KPI values where provided.

Do not invent baselines.

88. TARGETS
Do not create arbitrary targets.

If targets are unknown, state:

"Target to be established after baseline review."

89. IMPLEMENTATION PLAN
For a pricing change specify:

Decision
Configuration
Website / sales material update
Sales training
Customer communication
Existing customer policy
Launch
Monitoring
Review

90. PILOT
Where risk is significant, recommend testing with a limited:

Segment
Region
Channel
Offer
New-customer cohort

before wider rollout.

91. CUSTOMER COMMUNICATION
For price increases, explain:

What is changing
When
Why
What value is included
What customers need to do

Avoid defensive wording.

92. SALES TEAM COMMUNICATION
Prepare:

Pricing logic
Value explanation
Discount rules
FAQ
Objection responses
Escalation rules

93. MONITOR AFTER LAUNCH
Track:

Sales volume
Conversion
Discount requests
Margin
Customer feedback
Churn
Plan mix

Use metrics appropriate to the model.

94. DEFINE REVIEW PERIOD
If no review date is supplied, recommend establishing one rather than inventing a calendar date.

95. STOP / ADJUST CRITERIA
Define what signals would justify reconsidering the pricing approach.

Avoid arbitrary numeric thresholds unless evidence supports them.

96. RECOMMENDATION
Provide:

Recommended pricing model
Reason
Main economic logic
Customer-value logic
Positioning logic
Key assumptions
Key risks

97. ALTERNATIVES
Provide 1–2 realistic alternatives and explain:

Advantages
Disadvantages
Best use case

98. CONFIDENCE LEVEL
Rate:

High
Medium
Low

based on input quality.

Explain what evidence would increase confidence.

99. NEXT RESEARCH PRIORITIES
Rank:

P1
P2
P3

based on how much the missing information could change the pricing decision.

100. FINAL QUALITY CHECK
Before finalizing verify:

- no competitor price was invented
- no customer willingness-to-pay was invented
- no demand elasticity was invented
- no costs were invented
- calculations use visible inputs
- assumptions are clearly labeled
- recommendations match positioning
- discounts have an economic reason
- risks are visible
- alternatives were considered
- validation needs are clear

OUTPUT FORMAT:

1. Pricing Objective
2. Input & Evidence Review
3. Customer Value Analysis
4. Cost & Unit Economics
5. Market / Alternative Context
6. Current Pricing Assessment
7. Recommended Pricing Model
8. Recommended Price Structure
9. Tier / Package Design — if applicable
10. Discount Strategy
11. Pricing Scenarios
12. Break-Even Analysis — if possible
13. Customer Communication
14. Sales Guidance
15. Risks & Trade-offs
16. Alternatives Considered
17. Testing & Validation Plan
18. KPIs to Monitor
19. Implementation Plan
20. Research Gaps
21. Confidence Level
22. Final Recommendation

IMPORTANT:
- Do not invent market prices, costs, willingness-to-pay, conversion rates, volume response or customer behavior.
- Show formulas for calculations.
- Label assumptions clearly.
- Do not recommend undercutting competitors automatically.
- Do not assume a lower price will increase demand.
- Treat doing nothing and existing alternatives as part of the competitive context.
- Protect sustainable unit economics.
- Use value, cost, competition and positioning together rather than relying on one method.
- Do not use manipulative pricing tactics.
- Explain the risks and trade-offs of every major recommendation.
- Treat the recommended price as a decision hypothesis when evidence is incomplete, not as guaranteed market truth.