
Too often, ''pricing strategy” gets tossed around without much structure. But pricing is more than just a number—it’s a reflection of how you position your value, how you serve different customer needs, and how you scale revenue over time.
To simplify pricing strategy, I like to see it as a configuration across five dimensions:
1️⃣ Price Positioning
Are you Ferrari, BMW, or Kia? Premium, mid-market, or value? Every pricing decision should reflect a clear and intentional position.
2️⃣ Packaging
One-size-fits-all rarely works. Smart packaging gives customers choice—and helps you capture more value across segments.
3️⃣ Price Model
How you charge can matter more than how much. Netflix didn’t beat Blockbuster by lowering prices—they changed the model.
4️⃣ Pricing Metric
Align price with the value you deliver. Per user, per device, usage-based, outcome-based—this is key to sustainable growth and customer alignment.
5️⃣ Price Level
Yes, the number still matters. Value-based pricing should lead, but cost and competition should also inform the decision.
Like any framework, this one isn’t perfect or all-encompassing. But in my experience working with B2B companies across industries like Tech/SaaS/AI, Professional Services, and Financial Services, it simplifies discussions and keeps things clear—especially when pricing gets complex.
This framework works across industries. Some dimensions may carry more weight in different contexts—but together, they give you a complete lens to assess and improve your pricing.
And what about behavioral tactics or price communication? Crucial—but I think of those as the sauce, not the structure. And we all know: a great sauce still makes the dish.
How would you configure your pricing across these five dimensions?
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