AI Pricing Strategy Analysis & Recommendation Framework
Marketing StrategyintermediateClaude 3.5 Sonnet for nuanced financial modeling and strategic reasoning. GPT-4o as alternative for faster analysis with comparable quality. Both excel at multi-step pricing frameworks and competitive analysis.
When to Use This Prompt
Use this prompt when you're evaluating pricing changes, entering new markets, or optimizing revenue per customer. It's ideal for CMOs preparing pricing recommendations for executive review or when you need data-driven justification for price increases, discounts, or model changes.
The Prompt
You are a pricing strategy consultant helping a B2B/B2C marketing leader optimize their pricing model.
## Context
Analyze the following business and market information:
**Company Details:**
- Product/Service: [DESCRIBE YOUR OFFERING]
- Current Price Point: [CURRENT PRICE]
- Target Customer Segment: [PRIMARY AUDIENCE]
- Market Position: [LEADER/CHALLENGER/NICHE]
- Annual Revenue: [REVENUE OR N/A]
- Customer Acquisition Cost (CAC): [CAC OR ESTIMATE]
**Market Intelligence:**
- Top 3 Competitors: [LIST COMPETITORS AND THEIR PRICING]
- Market Growth Rate: [PERCENTAGE OR ESTIMATE]
- Customer Churn Rate: [PERCENTAGE OR N/A]
- Average Customer Lifetime Value: [LTV OR ESTIMATE]
**Business Constraints:**
- Gross Margin Target: [PERCENTAGE]
- Growth Objective: [SPECIFIC GOAL]
- Key Pricing Lever: [VOLUME/MARGIN/MARKET SHARE]
## Analysis Framework
Provide a structured analysis covering:
1. **Competitive Positioning**: How does our pricing compare? Are we premium, value, or discount positioned?
2. **Price Elasticity Assessment**: Based on market data, estimate demand sensitivity to price changes.
3. **Value-Based Pricing Opportunity**: What unique value justifies our price premium or discount?
4. **Pricing Model Alternatives**: Suggest 2-3 alternative pricing structures (tiered, usage-based, freemium, etc.)
5. **Financial Impact Modeling**: For each alternative, estimate revenue, margin, and volume implications.
6. **Implementation Roadmap**: Specific steps to test and implement pricing changes with minimal churn.
7. **Risk Assessment**: Identify potential customer, competitive, and market risks.
## Deliverables
Provide actionable recommendations with:
- Recommended price point(s) with rationale
- Expected impact on key metrics (revenue, margin, volume)
- 90-day testing and rollout plan
- Customer communication strategy
Get the Full AI Marketing Learning Path
Courses, workshops, frameworks, daily intelligence, and 6 proprietary tools — built for marketing leaders adopting AI.
Trusted by 10,000+ Directors and CMOs.
Tips for Best Results
- 1.Provide actual competitor pricing and customer feedback data—vague estimates reduce recommendation quality. Specific numbers enable precise elasticity modeling.
- 2.Include your gross margin target and growth goals upfront. Pricing recommendations must balance profitability with market expansion objectives.
- 3.Ask for a 90-day testing plan in the prompt. AI can model scenarios, but you need a phased rollout strategy to minimize customer churn risk.
- 4.Request financial impact modeling for each alternative with specific metrics (revenue, margin, volume). This gives you quantifiable justification for board presentations.
Example Output
## Pricing Strategy Analysis: SaaS Project Management Tool
**Competitive Positioning**
Your $99/month pricing sits at the premium end of the market. Competitors like Asana ($10-30/user) and Monday.com ($80-120/month) suggest you're positioned as a premium solution. This works if your differentiation is clear; otherwise, you risk commoditization.
**Price Elasticity Assessment**
Based on SaaS benchmarks, a 10% price increase would likely reduce volume by 5-8%, resulting in net revenue gain of 2-5%. However, enterprise customers show lower elasticity than SMBs.
**Pricing Model Alternatives**
1. **Tiered Model**: Starter ($49), Professional ($99), Enterprise ($249+) - captures more SMB market while protecting premium segment
2. **Usage-Based**: $50 base + $0.10 per project - aligns price with value delivered
3. **Hybrid**: Fixed seat-based + overage fees - balances predictability with growth
**Financial Impact Modeling**
- Current: 500 customers × $99 = $594K/year
- Tiered Model: 750 customers × $89 avg = $668K/year (+12.4%)
- Usage-Based: 600 customers × $95 avg = $570K/year (-4%, but higher retention)
**Implementation Roadmap**
- Month 1: Announce tiered pricing for new customers only
- Month 2: Offer existing customers 30-day trial of new tiers
- Month 3: Migrate willing customers; grandfather others at current rate
**Risk Assessment**
Churn risk for existing customers is moderate (3-5%) but offset by new customer acquisition. Competitive response likely within 60 days.
Related Prompts
Related Reading
Get the Full AI Marketing Learning Path
Courses, workshops, frameworks, daily intelligence, and 6 proprietary tools — built for marketing leaders adopting AI.
Trusted by 10,000+ Directors and CMOs.