pricing

# Pricing Good pricing is a packaging decision before it's a number. This skill picks the **value metric** (what you charge on), chooses a **model**, sets **good-better-best** tiers, and pressure-tests willingness-to-pay with **Van Westendorp** before you commit to a price. **Grounded in:** *Monetizing Innovation* — Madhavan Ramanujam: design around willingness-to-pay and the value metric before building. **Go deeper (The Product Channel):** [The Art of Pricing](https://sidsaladi.substack.com/p/week-41-the-art-of-pricing-11-essential) ## When to use this - Launching a new product or paid tier and need to set prices from scratch. - Suspect you're underpriced or leaving money on the table at the top end. - Deciding between per-seat, usage-based, or flat tiered pricing. - Repackaging existing plans because customers cluster on one tier or churn at upgrade. - Building a pricing page and need three tiers with a clear anchor and a "most popular" pick. ## Before you start (gather these) - **Value metric candidates** — what scales with the value the customer gets (seats, projects, API calls, GB, transactions, contacts). - **Cost-to-serve** per unit of that metric (to set a price floor and protect margin on usage plans). - **Willingness-to-pay signal** — at minimum a few customer quotes or a Van Westendorp survey (the four price questions below); failing that, competitor price points. - **Segments** — who buys (solo / team / enterprise) and the job each segment hires the product f...