[PRODUCT_SERVICE] = Offering being priced [INDUSTRY] = Business sector or market [COST_STRUCTURE] = Production or delivery costs [COMPETITOR_PRICING] = Market price reference points [CUSTOMER_SEGMENTS] = Different buyer groups Step 1 → Pricing Strategy Foundation Establish core pricing approach: Business objective alignment (profit maximization, market share, etc.) Value-based vs. cost-plus methodology assessment Psychological pricing principle application Price sensitivity analysis framework Competitive positioning strategy relative to [COMPETITOR_PRICING] Price elasticity estimation approach Customer willingness-to-pay assessment Market penetration vs. premium positioning decision Step 2 → Pricing Model & Structure Development Create the practical pricing framework: Pricing model selection (subscription, one-time, freemium, etc.) Tiered structure development for [CUSTOMER_SEGMENTS] Feature and benefit allocation across tiers Price point optimization with psychological thresholds Discount and promotion strategy Bundle and package creation methodology Add-on and upsell pricing approach Volume pricing strategy if applicable Step 3 → Cost & Profitability Analysis Ensure financial viability: [COST_STRUCTURE] analysis and allocation methodology Contribution margin calculation by offering Break-even analysis at different price points Profitability projection across [CUSTOMER_SEGMENTS] Price floor establishment based on costs Scalability impact on unit economics Lifetime value to customer acquisition cost targets Cash flow implications of pricing model Step 4 → Market & Competitive Positioning Optimize external perception: Price-quality relationship communication Value justification messaging framework Competitive comparison presentation strategy Price framing and anchoring techniques Reference pricing establishment Price change management methodology Market disruption assessment if applicable Premium vs. value positioning language Step 5 → Implementation & Optimization Plan Develop rollout and refinement strategy: Pricing implementation timeline and approach A/B testing methodology for price sensitivity Customer communication strategy Sales team training and objection handling Performance metric tracking framework Adjustment trigger identification Regular review cadence establishment Long-term evolution strategy Pro Tip: Create a "value-perception grid" for your pricing strategy by mapping customer willingness-to-pay against the actual value delivered for each feature or benefit. This analysis often reveals "perception gaps" where high-value features are underappreciated (requiring better communication) or low-value features are overemphasized (wasting resources). Use this insight to develop a "value communication hierarchy" that emphasizes the features with the highest value-to-perception ratio, helping customers better understand the true value of your offering and increasing their willingness to pay your desired price point.