Chapter 4
Choose a first pricing approach
Turn choose a first pricing approach into a defensible pricing decision in 30–45 minutes, with explicit assumptions and a measurable test—without pricing an undefined package.
What you’ll get
- Primary pricing decision: Use one of three simple structures.
- Working calculation: Set the price hypothesis.
- Quality check: Avoid reflexive underpricing.
Before you begin
Bring the exact package, current costs, expected support, buyer alternatives, and available funnel data. Set a 30–45 minutes timer. Keep facts, estimates, and assumptions in separate columns.
Conversion checkpoint
Price is interpreted with the promise, proof, alternatives, and checkout experience. Do not read low sales as a price problem until you have enough qualified visits and can see where the buyer path loses momentum.
Use one of three simple structures
One offer, one price Best when the product and audience are focused. It creates the clearest first test.
Core + expanded Use only when the expanded package serves a distinct need—such as added examples, team rights, or support—not to make the core intentionally incomplete.
Bundle Use when products combine into one connected outcome. State the individual and bundle value accurately and avoid false savings comparisons.
Set the price hypothesis
Consider:
- Importance and frequency of the buyer’s outcome
- Evidence that the buyer prioritizes the problem
- Specificity and completeness of the solution
- Credible alternatives
- Proof and creator trust
- Support and usage rights
- Economic floor
- Fit with future products and offer ladder
Document why you chose the number and what evidence would cause it to change.
Avoid reflexive underpricing
A low price can still fail when the audience, promise, preview, or trust is unclear. It can also attract buyers who are poorly matched to the product or leave no room for support and acquisition. Test the offer diagnosis before treating price as the only problem.
Finish line
- The priced package and boundaries are explicit.
- Costs and assumptions are visible.
- The test changes only one meaningful variable.
- The next price change has a reason and decision rule.
