1. Input Collection Steps

1. Ask the user to describe their current SaaS product pricing structure, including all tiers, price points, and what features or limits are included at each level.
   • Example: "What are your current pricing tiers (Free, Starter, Pro, Enterprise), what does each cost, and what features or usage limits are included at each level?"
2. Ask the user to identify their target customer segments and which pricing tier is designed to serve each segment (individual users, small teams, mid-market, enterprise).
   • Example: "Who is each pricing tier designed for—freelancers, small businesses, mid-market companies, or large enterprises? What are the typical needs of each segment?"
3. Ask the user to provide data on current pricing performance, including conversion rates per tier, most popular tier, upgrade/downgrade patterns, and churn by tier.
   • Example: "Which tier do most customers choose, what are the conversion rates for each, and do you see customers upgrading, downgrading, or churning at different rates per tier?"
4. Ask the user to list their main competitors and share any available information on competitor pricing, features, and positioning.
   • Example: "Who are your top 3-5 competitors, what do they charge, and how do their features and pricing models compare to yours?"
5. Ask the user to describe their value metric (seats, usage, features) and whether they've tested or considered alternative pricing models (per-user, usage-based, flat-rate, hybrid).
   • Example: "How do you charge—per user, per feature tier, usage-based, or flat fee? Have you experimented with other pricing models?"
6. Ask the user about business goals and constraints that should inform pricing strategy, such as growth targets, profitability requirements, market positioning (premium vs. affordable), or expansion plans.
   • Example: "What are your revenue and growth goals, and are there any constraints—profitability needs, competitive pressure, or brand positioning considerations?"

2. Research / Analysis Steps

• Analyze current pricing tiers to identify gaps, overlaps, or misalignments between features, value, and price points.
• Benchmark competitor pricing and packaging to determine where your product is positioned (higher, lower, comparable) and identify differentiation opportunities.
• Evaluate conversion and upgrade data to pinpoint pricing friction points, underperforming tiers, or missing tier options.
• Assess value metric alignment with customer willingness to pay and usage patterns—does the pricing structure scale with customer value realization?
• Model revenue impact of potential pricing changes: tier restructuring, price increases/decreases, new tier introductions, or model shifts.
• Identify psychological pricing tactics (anchoring, decoy tiers, tiered discounts) that could improve conversion and average revenue per user.

3. Generation / Synthesis Steps

• Produce a pricing analysis overview summarizing current structure, competitive positioning, and key performance insights.
• Summarize user inputs and data in a reference section covering existing tiers, customer segments, competitors, and business objectives.
• Build a competitive comparison matrix showing how your pricing and features stack up against key competitors across tiers.
• Create detailed recommendations for pricing optimization, including suggested tier changes, price adjustments, feature reallocations, or model modifications.
• Model projected revenue impact of each recommendation with estimated effects on conversion, ARPU, and total revenue.
• Provide a prioritized action plan outlining which pricing changes to implement first, testing strategies, and rollout considerations.

4. Internal Validation / Quality Gate

• Verify that all recommendations are grounded in the provided data, competitive analysis, and stated business goals.
• Confirm that suggested pricing changes maintain or improve unit economics and align with target customer segment willingness to pay.
• Check that competitive positioning is realistic and differentiated, avoiding race-to-the-bottom or unjustified premium pricing.
• Review revenue impact models for reasonable assumptions and ensure sensitivity to key variables (conversion rate, tier distribution).
• If any criterion fails, revise the recommendations, competitive analysis, or revenue models once before presenting to the user.

5. Output Presentation & Review Steps

• Present the analysis with clear headings: Current Pricing Overview, Competitive Comparison, Performance Insights, Optimization Recommendations, Revenue Impact Models, and Action Plan.
• Use tables, comparison matrices, or formatted lists to make pricing data, competitor positioning, and recommendations easy to compare and understand.
• Invite the user to review the draft and request adjustments to recommendations, competitive scope, or revenue modeling assumptions.
• If revisions are requested, loop back to the Generation / Synthesis Steps and update the analysis, recommendations, or financial projections.
• Once the user approves, confirm the strategy is ready for implementation and offer guidance on A/B testing pricing changes and monitoring performance metrics.