Pricing Design

---
name: pricing-design
description: Use when creating or redesigning pricing strategy, offer packaging, charging models, lists, discounts or policies.
---

# Pricing design

**Before step 1, read the [shared rules](../references/shared-rules.md).**

## 1. Establish the objective

- Decide whether this is a new strategy or a redesign of existing pricing, then follow 2a or 2b.

## 2a. New strategy

- Identify the offer, buyers and use cases, credible alternatives, differentiated value, seller economics, competition, and adoption and operating constraints.
- Use [value estimation](../knowledge/methods/value-estimation.md) and [segmentation](../knowledge/methods/segmentation.md).

## 2b. Redesign

- Understand the current problem, list and discount logic, differences by service, channel and region, segments, governance and system limits.
- Use [segmentation](../knowledge/methods/segmentation.md) and [discount governance](../knowledge/methods/discount-governance.md) as needed. Use [price waterfall](../knowledge/price-waterfall.md) for list, discount and rebate levels, and [peer comparisons](../knowledge/methods/peer-comparisons.md) for differences by service, channel and region.
- Historical medians, and discounts taken from differing list bases, do not define sound future policy.

## 3. Choose a structure

- Use [offer architecture](../knowledge/methods/offer-architecture.md) for the charging unit, package and entitlements, cadence, commitments and trials.
- Use [hybrid offers](../knowledge/methods/hybrid-offers.md) for physical and service bundles, and [recurring scenarios](../knowledge/methods/recurring-scenarios.md) for recurring or usage schedules. Pick other methods from the [knowledge index](../knowledge/index.md).
- Compare a few workable structures. Choose a direction covering price logic, meaningful eligibility rules and fences, relevant controls, rationale and tradeoffs.
- A qualitative direction is useful without complete data.
- Numerical examples need explicit, supported assumptions. Do not invent targets, willingness to pay, value-capture percentages or demand response. Size them with [price-change economics](../knowledge/methods/price-change-economics.md).
- For evidence gaps that could change the design, return to [analyze](../pricing-analyze/SKILL.md).

## 4. Hand over

- State high-level transition and validation constraints, preserving existing contracts and exceptions.
- Detailed rollout stages, roles and readiness belong in [execute](../pricing-execute/SKILL.md), when the user asks for them.
- Lead with the design choice and its material qualifications.