/pricing-strategy

name: memstack-marketing-pricing-strategy
description: "Use this skill when the user says 'pricing strategy', 'how to price', 'pricing model', 'tier structure', 'pricing psychology', or needs to design pricing tiers, apply pricing psychology, and plan A/B price tests. Do NOT use for competitor pricing comparison alone."
version: 1.0.0
license: "Proprietary, MemStack™ Pro by CW Affiliate Investments LLC. See LICENSE.txt"

Pricing Strategy: Designing pricing model...

*Designs pricing tiers using cost-plus, value-based, and competitor-based models with psychology triggers, tier structure templates, and A/B test plans.*

Activation

When this skill activates, output:

`Pricing Strategy: Designing pricing model...`

Then execute the protocol below.

Context Guard

| Context | Status | |---------|--------| | User says "pricing strategy", "how to price", "pricing model" | ACTIVE | | User says "tier structure" or "pricing psychology" | ACTIVE | | User wants to design or redesign their pricing | ACTIVE | | User wants competitor pricing comparison only | DORMANT: use Competitor Analysis | | User wants to create an invoice | DORMANT: use Invoice Generator |

Common Mistakes

| Mistake | Why It's Wrong | |---------|---------------| | "Price based on what it costs to make" | Customers pay for outcomes, not your expenses. Cost-plus leaves money on the table. | | "Match the cheapest competitor" | Racing to the bottom kills margins. Differentiate on value, not price. | | "Three tiers is always right" | Some products need 2 (simple choice), some need 4 (enterprise). Match tiers to buyer segments. | | "Never raise prices" | Grandfathering old prices forever means your best customers pay the least. Raise annually. | | "Free tier for everyone" | Free tiers attract non-buyers. Only use freemium if free users create viral growth. |

Protocol

Step 1: Gather Pricing Requirements

If the user hasn't provided details, ask:

> 1. **Product/service**: what are you pricing? (SaaS, physical product, service, course) > 2. **Costs**: what does it cost to deliver? (COGS, hosting, labor) > 3. **Target customer**: freelancer, SMB, mid-market, or enterprise? > 4. **Current pricing**: is this a new product or a re-pricing? > 5. **Competitors**: what do alternatives cost? > 6. **Value delivered**: what outcome or ROI does the customer get?

Step 2: Select Pricing Model

| Model | Best For | How It Works | |-------|---------|-------------| | **Cost-plus** | Physical products, commodities | Cost × markup (e.g., 2.5x) | | **Value-based** | SaaS, consulting, info products | Price = fraction of value delivered to customer | | **Competitor-based** | Crowded markets with clear benchmarks | Position relative to market (below, at, or above) | | **Usage-based** | API, infrastructure, metered services | Pay per unit (API call, GB stored, seat) | | **Freemium** | PLG (product-led growth) SaaS | Free core + paid premium features | | **Flat rate** | Simple products with one buyer type | One price, everything included |

**Decision framework:**

Can you quantify the ROI your product delivers?
├── Yes → Value-based pricing (capture 10-20% of customer's ROI)
└── No
    ├── Is the market well-established with clear price benchmarks?
    │   ├── Yes → Competitor-based (position strategically)
    │   └── No → Cost-plus (ensure margins, then test market willingness)
    └── Does usage vary dramatically between customers?
        └── Yes → Usage-based or hybrid (base + usage)

Step 3: Calculate Price Anchors

**Cost-plus calculation:**

Direct cost per unit: $[X]
Overhead allocation: $[X]
Total cost: $[X]
Target margin: [X]%
Price = Total cost ÷ (1 - margin%)
Example: $40 cost ÷ (1 - 0.70) = $133 price (70% margin)

**Value-based calculation:**

Customer's problem cost (annual): $[X]
Your product saves them: $[X]/year
Value capture rate: 10-20%
Price = Annual savings × capture rate
Example: $50,000 saved × 15% = $7,500/year ($625/mo)

**Competitor-based positioning:**

Cheapest competitor: $[X]/mo
Average competitor: $[X]/mo
Premium competitor: $[X]/mo

Your position:
- Below average → justify with "same features, lower price"
- At average → justify with "better UX/support/speed"
- Above average → justify with "more value/features/outcomes"

Step 4: Design Tier Structure

**3-tier template (most common):**

| | Starter | Professional | Enterprise | |---|---|---|---| | **Target buyer** | Freelancers, individuals | Small teams, SMBs | Large teams, companies | | **Price** | $[X]/mo | $[X]/mo | Custom | | **Billing** | Monthly or annual | Annual (15-20% discount) | Annual contract | | **Seats/usage** | 1 user / [limit] | Up to [X] users / [limit] | Unlimited | | **Feature 1** | Basic | Full | Full | | **Feature 2** | none | Full | Full | | **Feature 3** | none | none | Full | | **Support** | Email | Priority email | Dedicated CSM | | **SLA** | none | none | 99.9% uptime |

**Tier design rules:** 1. **Starter** must be useful on its own (not crippled). It proves value and creates habit. 2. **Professional** is the target tier, design the page to highlight it ("Most Popular"). 3. **Enterprise** exists for price anchoring even if you have few enterprise buyers. 4. Each tier should have 1-2 clear upgrade triggers (the feature you hit a wall without).

**Naming conventions:**

| Tone | Tier 1 | Tier 2 | Tier 3 | |------|--------|--------|--------| | Professional | Starter | Professional | Enterprise | | Friendly | Free | Pro | Business | | Creative | Solo | Team | Scale | | Simple | Basic | Plus | Premium |

Step 5: Apply Pricing Psychology

| Trigger | Implementation | Why It Works | |---------|---------------|-------------| | **Anchoring** | Show the highest price first (or "value" price before actual price) | First number seen sets the reference point | | **Decoy effect** | Make the middle tier the obvious best deal (closest to top tier, much cheaper) | The "bad deal" tier makes th