What is a strategic pricing excel template?

A strategic pricing excel template is a tool that helps businesses determine the optimal price for their products or services. It typically includes various factors such as cost of production, market demand, competitor pricing, and desired profit margins.

For a freemium product, the template might include columns for feature name, number of free users, conversion rate to paid users, price of the paid tier, marketing spend, and expected customer lifetime value (LTV).

You can find various strategic pricing excel templates online, some are free while others are paid. Choose one that best fits your business model and pricing strategy.

Remember, the goal of strategic pricing is not just to cover costs, but also to maximize profits while providing value to customers.

2 questions and answers

What are the direct, indirect, and other costs that need to be factored in while preparing a pricing model?

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When preparing a pricing model, several direct and indirect costs need to be considered:

Direct costs: These are costs directly associated with the production or delivery of a product or service. They include raw materials, labor costs, and manufacturing expenses.

Indirect costs: These are costs that are not directly tied to a specific product or service but are necessary for the overall operation of the business. They include overhead costs like rent, utilities, and administrative expenses.

Other costs: These can include marketing and advertising costs, research and development costs, and any costs associated with legal or regulatory compliance.

Additionally, it's important to consider the cost of customer acquisition, the expected lifetime value of a customer (LTV), and the desired profit margin. These factors will also significantly influence the final pricing model.

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Pricing Strategies

Need to evaluate the best pricing strategy for a product? This Pricing Strategy spreadsheet includes...

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