Pricing Strategy Advisor
Pricing is the thing most sellers overthink the least while stressing about it the most. Either you undercut the competitor by a few dollars or you slap a random multiplier on your cost. Both leave money on the table. The surface question is 'what do I charge'; the real question is 'which positioning do I want, and which price actually gets me the right customer.' This prompt takes your cost, competitor price range, and target margin, and produces three clear scenarios (market entry, premium, psychological pricing), each with honest pros and cons. It turns price from a guess into a decision.
You are a pricing and positioning strategist. Your expertise: turning cost, competitor, and target-margin data into clear price scenarios, and showing the real tradeoffs of each honestly. Your job is NOT to dictate a single 'ideal price'; it's to lay out options tied to different positioning choices, pros and cons included, so the seller can make an informed call. You'll give me: - [UNIT COST: product plus shipping plus fees plus packaging, as complete as possible] - [COMPETITOR PRICE RANGE] - [TARGET PROFIT MARGIN] - [IF RELEVANT: brand positioning, target audience, what makes the product different] RETURN THE OUTPUT IN THIS EXACT ORDER, WITH THESE EXACT HEADERS: === SCENARIO 1 - MARKET ENTRY (low price) === Recommended price plus estimated margin plus pros plus cons plus who it fits. === SCENARIO 2 - PREMIUM (high price) === Recommended price plus estimated margin plus pros plus cons plus who it fits. === SCENARIO 3 - PSYCHOLOGICAL THRESHOLD === A price that sits just under a round threshold ($50, $100, $500, etc.) plus margin plus reasoning. === RECOMMENDATION AND FIRST TEST === Based on the context given, which scenario to start with and how to test it. RULES: - Calculate margin for real off the cost I gave you; when you say 'roughly this,' show the logic. - Do NOT use made-up claims like 'customers pay X% more.' - Write the downside of every scenario honestly; don't just show the upside. - Remind me that price has to match the brand's story. - Write in natural, direct English, clear and decision-focused.
How to use it
- Step 1: Give your unit cost (product plus shipping plus platform fees plus packaging), your competitor price range, and your target profit margin. The more complete the cost picture, the more realistic the scenarios.
- Step 2: Match the three output scenarios to your positioning. Are you competing on price, building a quality perception, or anchoring at a psychological threshold. Your scenario choice should fit your brand's story.
- Step 3: Test the price you pick, don't set it in stone. Watch how conversion and margin move together over a short period. High price plus high conversion is the best signal you can get.
Example / tip
Input: Unit cost $30 (all-in), competitors priced $62 to $82, target margin 40%. AI output (shortened): Market entry $55, pro is fast first sales and review collection, con is thin margin and cheap-brand risk. Premium $87, pro is strong margin and quality perception, con requires solid content and social proof to back it up. Psychological $75, sits just under the $80 threshold, protects margin, still above the low end of the competitor range but reasonable. Recommendation: if your visuals are strong, start at $75.
Usage example
Copy the prompt as is, fill in the bracketed fields for your own business, and paste it into ChatGPT or Claude. The more concrete your input, the more useful the output. Take the first draft, ask for a one-sentence fix on whatever you don't like, then give it a final pass in your own voice.
When not to use it
Don't force it if you have no real input to work with. A prompt doesn't fill an empty field with data, it organizes and speeds up what you already know. Never publish the output unchecked; AI sometimes produces a claim that sounds right but is wrong or made up. Always verify anything that needs proof yourself: numbers, prices, guarantees.
Output quality checklist
- Is the output specific to your input, or generic filler that fits any business? If it's generic, run it again with more concrete input.
- Does every number, ratio, or claim have something backing it? Delete the unbacked ones or soften them honestly.
- Does it sound like you? Simplify the cliches and inflated lines in your own voice.
- Does it give one clear next step? If the reader knows what to do, the output did its job.
