Pricing Strategy

Overview

Pricing is the only marketing mix element that generates revenue — all others are costs. This skill covers five pricing approaches (cost-plus, value-based, competitive, penetration, skimming) plus psychological pricing techniques. The right approach depends on the product lifecycle stage, competitive landscape, and customer price sensitivity.

When to Use

Trigger conditions:

• User setting prices for a new product
• User evaluating whether current pricing is optimal
• User asks "how much should we charge?" or "why are our margins low?"
• User needs to choose between pricing models (subscription vs one-time, freemium vs premium)

When NOT to use:

• For comprehensive financial analysis → use financial ratios or DCF
• For customer segmentation → use STP
• For cost structure analysis → use Value Chain