Pricing model design, competitive positioning, value metric selection, price testing, and pricing page optimization. Use when the user asks about pricing strategy, pricing models, price testing, value-based pricing, or competitive pricing analysis.
The value metric is what you charge for (seats, API calls, revenue managed, etc.).
Good value metric criteria:
Scales with customer value — as they get more value, they naturally pay more
Easy to understand — customer can predict their bill
Measurable — you can track and bill accurately
Controllable — customer can influence their usage
Product Type
Common Value Metrics
Email marketing
Contacts, emails sent
Analytics
Events tracked, monthly users
CRM
Seats, contacts
Infrastructure
Compute hours, storage, requests
E-commerce platform
GMV, orders, SKUs
Design tools
Seats, projects, exports
Competitive Pricing Analysis
Analysis Framework
Inventory competitors — list all direct and indirect alternatives
Map pricing models — how does each charge?
Normalize to common unit — price per seat/month at comparable usage
Position on value map — plot price vs. feature completeness
Identify gaps — underserved price points or segments
Positioning Strategies
Strategy
Description
When to Use
Premium
Price above market, justify with value
Strong brand, unique features
Competitive
Match market prices
Commoditized market, feature parity
Penetration
Price below market to gain share
New entrant, land-and-expand model
Value
Price based on ROI delivered
Measurable customer outcomes
Good/Better/Best Tier Design
Tier Structure
FREE (or Starter): Entry point — enough to get hooked, not enough for serious use
PRO (or Growth): Primary revenue tier — designed for most customers
ENTERPRISE: High-touch — custom pricing, premium support, compliance features
Tier Design Rules
Most Popular = middle tier — anchor it visually and with a badge
Free tier limits should push to paid naturally (not by being crippled)
Feature fences should align with customer maturity (not arbitrary gates)
Price anchoring — show enterprise price to make pro feel reasonable
Annual discount — 15-20% for annual commitment (show monthly equivalent)
Pricing Page Optimization
Best Practices
Default to annual billing toggle (pre-selected) with monthly option
Show savings for annual ("Save 20%")
Highlight recommended plan (visual emphasis + "Most Popular" badge)
Feature comparison table with max 8-10 rows (not 40)
CTA per plan with specific text ("Start Free Trial" vs "Contact Sales")
Social proof per tier ("Used by 500+ teams")
FAQ section addressing pricing objections
Money-back guarantee or free trial prominently displayed
Price Testing Methods
Method
Sample
What It Tests
Van Westendorp
Survey 200+
Price sensitivity (too cheap, too expensive, bargain, deal-breaker thresholds)
