• Price Model
• Pricing Methodology
• Pricing Framework
• Revenue Strategy
• Pricing Plan
• Monetization Strategy
• Commercial Strategy
• Price Optimization Approach
• Sales Pricing Tactic
• Strategic Pricing

Maximize Revenue & Profitability – Ensures pricing aligns with business goals while optimizing profit margins.
Stay Competitive – Balances affordability with value to attract customers and outperform competitors.
Enhance Brand Perception – Establishes a product’s perceived value in the market (e.g., premium vs. budget positioning).
Encourage Customer Loyalty – Offers fair, consistent pricing that builds trust and long-term relationships.
Support Scalability – Adapts to market changes, customer behavior, and business growth.

• Porter’s Five Forces Analysis – Helps assess competitive pressure and pricing power in an industry.
• Value-Based Pricing Framework – Aligns pricing with perceived customer value rather than cost.
• The Pricing Pyramid – Defines a structured approach from price setting to price realization.
• Cost-Volume-Profit (CVP) Analysis – Evaluates how pricing affects profitability at different sales volumes.

1. Cost-Based Pricing

Pricing is determined by calculating the total cost of production and adding a fixed profit margin.

• Example: A manufacturer calculates production costs at $50 per unit and adds a 30% markup, pricing the product at $65.
• Best for: Businesses with stable production costs and minimal price fluctuation.

2. Value-Based Pricing

Pricing is based on the perceived value to customers rather than production costs.

• Example: A luxury brand sets higher prices due to brand prestige and perceived exclusivity.
• Best for: Businesses offering unique or high-value products.

3. Competitive Pricing

Prices are set based on competitors’ pricing strategies.

• Example: A SaaS company sets its subscription price at $49/month to match a competitor while offering additional features.
• Best for: Markets with intense competition and price-sensitive customers.

4. Penetration Pricing

Businesses set a lower initial price to attract customers and gain market share quickly.

• Example: A new streaming service offers a free trial or lower monthly fees to encourage sign-ups.
• Best for: New market entrants and subscription-based businesses.

5. Skimming Pricing

Setting a high initial price and gradually lowering it over time to maximize early profitability.

• Example: Tech companies launch new smartphones at premium prices before reducing them after several months.
• Best for: Innovative products with early adopters willing to pay more.

6. Dynamic Pricing

Prices fluctuate based on real-time demand, customer behavior, and external factors.

• Example: Airline tickets increase in price during peak travel seasons.
• Best for: E-commerce, travel, and industries with variable demand.

7. Subscription-Based Pricing

Customers pay a recurring fee for continued access to a product or service.

• Example: Netflix charges a monthly subscription for unlimited streaming.
• Best for: SaaS, digital services, and content platforms.

8. Freemium Pricing

A basic version of a product is offered for free, while advanced features require payment.

• Example: Dropbox provides free storage with paid plans for additional features.
• Best for: Software and digital service companies looking to build user bases.

9. Bundle Pricing

Multiple products or services are packaged together at a discounted price.

• Example: A telecom provider offers internet, phone, and TV as a bundle.
• Best for: Businesses aiming to increase sales volume and perceived value.

10. Geographical Pricing

Prices are adjusted based on location, currency value, or regional demand.

• Example: An international brand prices its products differently in the US and India based on purchasing power.
• Best for: Global businesses with diverse customer bases.

• Automate Complex Pricing Rules – Apply tiered, volume-based, or customer-specific pricing without manual intervention.
• Enforce Governance & Compliance – Prevent rogue discounting and ensure every quote aligns with pricing policies.
• Support Multi-Currency & Geo-Based Pricing – Dynamically adjust pricing for global sales teams and customers.
• Integrate with Real-Time Data – Pull cost, inventory, and CRM data to ensure timely and accurate pricing.
• Model ‘What-If’ Scenarios – Simulate the impact of pricing changes on margins and deal win rates.
• Enable Role-Based Pricing Flexibility – Tailor pricing permissions for sales reps, partners, and channels.
• Accelerate Deal Velocity – Generate optimized, approved quotes faster and close deals with confidence.
• Centralize Pricing Governance – Maintain a single source of truth for all pricing data, eliminating inconsistencies across teams and channels.
• Real-Time Margin Visibility – Provide finance and sales leaders with up-to-date profitability metrics on every deal.
• Scenario-Based Deal Modeling – Enable sales teams to simulate different pricing or bundling scenarios to win competitive deals.
• Approval Workflow Automation – Streamline pricing and discount approvals to reduce bottlenecks and accelerate quote turnaround.
• Smart Discounting Controls – Set boundaries for discounts based on margins, deal size, or customer segment, preventing revenue leakage.
• Multi-Segment Pricing Management – Manage different pricing structures for enterprise, SMB, partners, and global markets from one unified platform.

• Balancing Profitability & Competitiveness – Overpricing may deter customers, while underpricing can reduce margins.
• Market Volatility – Fluctuating demand and costs require adaptable pricing models.
• Customer Perception – Inconsistent pricing can damage brand trust and loyalty.
• Managing Discounts & Promotions – Excessive discounting can erode long-term profitability.
• Data Accuracy & Analysis – Businesses must leverage analytics to refine pricing models based on customer insights.

• Dynamic Pricing
• Value-Based Pricing
• Competitive Pricing
• CPQ (Configure, Price, Quote)
• Profit Margins