Pricing Strategy
Pricing strategy is a business methodology for setting the price of products or services based on factors like costs, customer value, competition, and market conditions. It involves selecting a pricing model (e.g., cost-plus, value-based, competitive) to achieve business goals such as maximizing profit, increasing market share, or enhancing customer perception. This skill is crucial in product management, marketing, and business development roles, often requiring data analysis and strategic decision-making.
Developers should learn pricing strategy when involved in product development, SaaS offerings, or startup environments to align technical features with revenue models and market viability. It's essential for roles like product managers, technical founders, or developers contributing to monetization decisions, as it helps optimize pricing for customer acquisition, retention, and profitability. Use cases include launching new software, adjusting subscription tiers, or analyzing competitor pricing in tech markets.