pricing_skill

Overview

This skill helps product teams design pricing strategies and monetization models for SaaS and digital products. It focuses on value-based pricing, tier design, unit economics, and practical revenue optimization techniques. Use it to align pricing with customer value and business goals.

How this skill works

The skill inspects product value drivers, customer segments, and usage patterns to recommend pricing models (freemium, subscription, usage-based, or hybrid). It provides formulas and diagnostics for LTV, CAC targets, payback periods, and revenue forecasting. It also includes testing approaches like Van Westendorp price sensitivity and A/B experiments to validate assumptions.

When to use it

• Launching a new SaaS product or pricing tiers
• Repricing or introducing upgrades and add-ons
• Evaluating freemium vs paid conversion levers
• Optimizing unit economics and CAC payback
• Modeling revenue forecasts and scenario planning

Best practices

• Start with value-based pricing: quantify customer savings or revenue impact before setting price
• Design clear tiers with strong upgrade paths to drive expansion revenue
• Monitor LTV/CAC and aim for LTV/CAC > 3 and payback < 12 months
• Use price sensitivity surveys and A/B tests before wide rollout
• Align packaging with distinct jobs-to-be-done, not feature lists

Example use cases

• Create a three-tier subscription plan with annual discounts and defined feature sets
• Build a freemium funnel and target a 2–5% free-to-paid conversion uplift via onboarding improvements
• Switch core billing to usage-based pricing for an API product and model per-call economics
• Run Van Westendorp surveys to identify optimal price bands for a new enterprise module
• Diagnose flat revenue by auditing upsell paths and introducing expansion pricing