Cycle glossary

Pricing strategy refers to the approach a company takes to determine the price of its products or services. It involves considering various factors like production costs, competition, target market, and value perception. In product management, having a solid pricing strategy is crucial as it directly impacts revenue, profitability, and customer perception.

For example, a SaaS startup targeting small businesses may adopt a "freemium" pricing strategy, offering a basic version of their product for free and charging for advanced features. This allows them to attract users, build a customer base, and upsell premium features to those who find value in the product. On the other hand, a high-end luxury brand may adopt a premium pricing strategy, leveraging exclusivity and quality to justify higher prices.