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Pricing Strategy: The Art and Science of Setting Prices

1,522 1 min

Three core pricing models: Cost-plus (cost + margin), Competitor-based (based on rivals' prices), Value-based (based on the value created for the customer). The last is the most correct approach — not cheaper, but more effective. In B2B SaaS, value-based pricing can justify 10× higher prices.

Psychological pricing: $99 vs $100, the Starter/Professional/Enterprise trio (the middle option is chosen most — the decoy effect), annual payment discounts (good for cash flow). Price anchoring — show the high price first to make the main price look cheap. Don't be afraid to raise prices — it more often increases revenue than churn.

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