What is pricing strategy?
Pricing strategy is the deliberate choice of what to charge, why, and how. Most early-stage founders default to cost-plus pricing, which means calculating cost and adding margin, but that approach leaves money on the table and rarely reflects what customers actually value. A real pricing strategy starts with the customer and works backward.
Who this is for and when to use it
African founders setting a price for the first time, operators with a product that is selling but margins are thin, and teams launching a new product line or repositioning an existing one. Use the worksheet before launching a new product, when sales conversations are getting price objections, when margins are not improving with volume, before raising prices on existing customers, and during annual planning.
What is inside
A written guide that explains the major pricing models (cost-plus, value-based, competitive, penetration, premium, tiered, freemium, dynamic) and when to use each, plus an editable spreadsheet that lets you model the impact of each price on volume, margin, and breakeven. Pair with The Pricing Strategy Guide for the full narrative explanation.
Key concepts you will learn
Value-based pricing versus cost-plus pricing, willingness-to-pay research, price anchoring, the Van Westendorp price sensitivity model, tiered pricing and good/better/best design, the relationship between price and positioning, discount discipline, and the difference between price and packaging.