Product Pricing Sensitivity Analysis

J

Jordan Reyes

@jordan-reyes

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Analyze pricing sensitivity using multiple frameworks

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Conduct a pricing sensitivity analysis for {{product_feature}}.

Current pricing: {{current_price}}
Target market: {{market_segment}}
Competitor range: {{competitor_pricing}}

Analysis framework:

1. VAN WESTENDORP PRICE SENSITIVITY
- At what price is this too cheap (quality concerns)?
- At what price is this a bargain?
- At what price is this getting expensive?
- At what price is this too expensive?

2. PRICE ELASTICITY ESTIMATION
- How would demand change at +20%?
- How would demand change at -20%?
- What is the estimated elasticity coefficient?

3. VALUE-BASED PRICING ANALYSIS
- What problem does this solve?
- What is the cost of the problem?
- What is fair value capture (10-20% of value created)?

4. COMPETITIVE POSITIONING
- Where do we sit vs alternatives?
- What premium/discount is justified?
- What is the reference price customers expect?

5. RECOMMENDATION
- Optimal price point
- Pricing model (flat/tiered/usage)
- Testing approach

Details

Category

Analysis

Use Cases

Optimize pricingUnderstand price sensitivitySet competitive prices

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gpt-4claude-3
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