Pricing strategy built from your costs and competitor prices
Pricing too low leaves money on the table; too high and nobody buys. Your todo.is agent researches what competitors charge, works out your cost floor, and proposes a pricing strategy with tiers, discount rules and a simple test plan, all in a spreadsheet you can play with.
The prompt
- Help me set a pricing strategy for [PRODUCT OR SERVICE]. We sell to [TARGET CUSTOMERS] in [MARKET OR COUNTRY]. Our costs per unit or per customer: [COSTS]. Our main competitors: [COMPETITORS OR ASK YOU TO FIND 5]. Research competitor prices, plans and what each includes, with links and the date you checked. Then: calculate our break-even price and margin at different price points, compare cost-plus, competitor-based and value-based pricing for our case, propose 2 or 3 tiers with names, prices and what goes in each, set discount and annual billing rules, and suggest how to test prices with real customers for [TEST PERIOD]. Deliver an Excel file (competitor table, margin calculator with editable inputs, tier table) and a one-page Word summary of the recommendation.
What to change
- [PRODUCT OR SERVICE]: e.g. "online booking software for dog groomers" or "handmade soy candles".
- [TARGET CUSTOMERS]: e.g. "solo groomers and small salons with 2 to 5 staff".
- [MARKET OR COUNTRY]: e.g. "UK" or "US and Canada".
- [COSTS]: e.g. "$4 per customer per month hosting and support, $2,000 fixed monthly", or attach a cost sheet.
- [COMPETITORS OR ASK YOU TO FIND 5]: Names or websites, or let your agent find them.
- [TEST PERIOD]: e.g. "the next 8 weeks".
Example result
- Pricing strategy: Wagtime booking software
- *All numbers are illustrative assumptions based on your inputs.*
- What competitors charge (checked Oct 8)
- • Competitor A: single plan around the mid-$30s a month, unlimited bookings
- • Competitor B: 3 tiers, cheapest limited to 1 staff member
- • Competitor C: per-staff pricing, SMS reminders cost extra
- • Most charge extra for SMS reminders and online payments
- Cost floor
- • Variable cost: $4 per customer per month
- • Fixed costs: $2,000 a month
- • At $29 a month you need 80 customers to break even; at $39 you need 58
- Which approach fits
- • Cost-plus gives a floor, but ignores what groomers save
- • Competitor-based puts you in a crowded middle
- • Value-based fits best: one no-show prevented per month already covers the plan
- Recommended tiers
- • Solo, $29/month: 1 groomer, online booking, email reminders
- • Salon, $59/month: up to 5 staff, SMS reminders included, deposits to cut no-shows
- • Pro, $99/month: unlimited staff, multiple locations, reports
- Most customers should land on Salon: it is the best value and includes SMS, the thing competitors charge extra for.
- Discount rules
- • Annual billing: 2 months free
- • No custom discounts above 20% without founder approval
- • Founding customers keep their price for 12 months
- 8-week price test
- • Weeks 1 to 4: show Salon at $59 to new visitors
- • Weeks 5 to 8: show Salon at $69
- • Compare trial starts, trial-to-paid rate and revenue per visitor, not just sign-ups
- • Keep existing customers on their current price
- Next step
- Update the price page, then ask your agent to check competitor price pages every month and message you when one changes.
How to do it with todo.is
- Copy the prompt and fill in your product, customers, costs and competitors.
- Paste it into todo.is on the Today screen. Attach a cost sheet or sales data if you have them.
- Your agent checks competitor pages in a real browser, then returns the Excel model and a one-page recommendation.
- Change the inputs in the spreadsheet to try other prices, or ask your agent to rerun it with new costs.
Tips for a better result
- Know your floor first. A price below your variable cost loses more money with every sale.
- Price on the value to the customer, then check it against competitors, not the other way round.
- Three tiers work well: most buyers choose the middle when it is clearly the best value.
- Test prices on new customers only, and judge by revenue per visitor, not sign-ups.
- Set a monthly recurring to-do to check competitor price pages and message you only when something changes.
pricing strategy: FAQ
- What are the main pricing strategies? Common ones are cost-plus, competitor-based, value-based, penetration (low to win share), premium, and freemium or tiered pricing. Most businesses combine a cost floor with value-based tiers.
- How do I know if my price is too low? Signs include almost nobody objecting to the price, very high conversion, thin margins and customers saying it is a bargain. A careful price test is the safest way to check.
- How often should I review my prices? At least once a year, and whenever your costs or competitors change a lot. Many businesses adjust prices for new customers first.
- Can todo.is track competitor prices automatically? Yes. A recurring to-do can check public price pages on a schedule and message you on email, WhatsApp, Telegram, Slack or Discord when a price changes.
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