Sales Pricing Strategy

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 Instructions and Table of Conten

Thank you for downloading HubSpot's Pricing Strategy Calculator! In

workbook are nine tabs – each dedicated to a unique pricing strategy y
employ in your business model.

You can jump to them by clicking their names in the cell below or usi
the bottom of this document. There, you'll be prompted to fill out pric
sales projections to provide you with an expected revenue/contributio

Jump to a Calculator
Competition-Based Pricing

Freemium Pricing
nesses
Skimming Pricing

Premium Pricing (Fixed)

Value-Based Pricing
nd Table of Contents

s Pricing Strategy Calculator! In this Excel

ed to a unique pricing strategy you could

r names in the cell below or using the tabs at

ou'll be prompted to fill out price points and
n expected revenue/contribution amount.

o a Calculator
Cost-Plus Pricing (Fixed)

Hourly Pricing

Penetration Pricing

Project-Based Pricing

Based Pricing
 Competition-Based Pricing
Key
Pre-Filled Text Cells
Cells Will Auto-Populate
Enter Your Own Information

Competitor('s) Price $ -
Your Price $ -

Your Price Is… #DIV/0! & $ -

Product Variable Cost $ -

Gross Margin $ -

Projected # of Units Sold 0

Projected Total Revenue $ -

Projected Gross Margin $ -
Competition-based pricing strategy uses the competitors’ prices as a benchmark.
Businesses who compete in a highly saturated space may choose this strategy
since a slight price difference may be the deciding factor for customers. You can
price your products slightly below, the same as, or slightly above your
competition or the average of competition.

This strategy is great for Products, Digital Products, and Events.

#DIV/0!

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 Cost-Plus Pricing
Key
Pre-Filled Text Cells
Cells Will Auto-Populate
Enter Your Own Information
Unit Variable Cost
Projected # of Units Sold
A cost-plus pricing strategy focuses solely on th
producing your product or service. It’s also know
markup pricing.
To apply the cost-plus method, add a fixed perce
dollar amount to your product production cost.
$ -
0 This strategy is great for Products and Retailer

Choose whether you want to apply a percentage-based price increase or a fixed dollar incre

Fixed Dollar Percentage-Based

Fixed Dollar Increase Amount $ - Markup %
Unit Selling Price $ - Unit Selling Price

Gross Revenue $ - Gross Revenue

Gross Margin $ - Gross Margin
 icing strategy focuses solely on the cost of
ur product or service. It’s also known as
g.

cost-plus method, add a fixed percentage or

to your product production cost.

s great for Products and Retailers.

rease or a fixed dollar increase.

0%
$ -

$ -
$ - Home
 Freemium Pricing
Key
Pre-Filled Text Cells
Freemium pricing is when companies offer a b
Cells Will Auto-Populate hoping that users will eventually pay to upgra
Enter Your Own Information
Free trials and limited memberships offer a “p
functionality — and also build trust with a pot

Number of Free Users 0 With freemium, a company’s prices must be a

their products.
Freemium-to-Premium Upgrade Rate 0%
Projected # of Updated Users 0 This strategy is great for SaaS and other soft

Cost of Premium Product $ -

Projected Revenue $ -
s when companies offer a basic version of their product
ill eventually pay to upgrade or access more features.

ed memberships offer a “peek” into a software’s full

also build trust with a potential customer before purchase.

ompany’s prices must be a function of the perceived value of

at for SaaS and other software companies.

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 Hourly Pricing
Key
Pre-Filled Text Cells
Cells Will Auto-Populate
Enter Your Own Information
Hourly Rate
Hours Billable Each Week
Hourly pricing is also known as rate-based
pricing. Hourly pricing is essentially trading
time for money.
This pricing strategy is awesome for
Consultants, Freelancers, Contractors, and
other individuals who provide business services.
$ -
0

Weekly Revenue $ -
Monthly Revenue (on Average) $ -
Annual Revenue $ -
so known as rate-based
ing is essentially trading

y is awesome for
ancers, Contractors, and
ho provide business services.

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 Skimming Pricing

Key
Pre-Filled Text Cells
Cells Will Auto-Populate
Enter Your Own Information

A skimming pricing strategy is when companies charge the

highest possible price for a new product and then lower the
price over time as the product becomes less and less popular.

A skimming pricing strategy helps recover sunk costs and sell

products well beyond their novelty, but the strategy can also
annoy consumers who bought at full price and attract
competitors who recognize the “fake” pricing margin as
prices are lowered.

This strategy is best fit for Technology Products and New

Products and Services.

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Product Cost to Produce $ -

Phase 1 Pricing $ -
Projected Units Sold 0
Projected Revenue $ -
Projected Gross Margin $ -

Phase 2 Pricing $ -
Projected Units Sold 0
Projected Revenue $ -
Projected Gross Margin $ -

Phase 3 Pricing $ -
Projected Units Sold 0
Projected Revenue $ -
Projected Gross Margin $ -

Phase 4 Pricing $ -
Projected Units Sold 0
Projected Revenue $ -
Projected Gross Margin $ -

Final Total
Total Projected Units Sold 0
Total Projected Revenue $ -
Total Projected Gross Margin $ -
 Penetration Pricing

Key
Pre-Filled Text Cells
Cells Will Auto-Populate
Enter Your Own Information

Contrasted with skimming pricing, a penetration pricing

strategy is when companies enter the market with an
extremely low price, effectively drawing attention (and
revenue) away from higher-priced competitors.

Penetration pricing isn’t sustainable in the long run, however,

and is typically applied for a short time. In this spreadsheet,
keep Phase 1 pricing low and increase as you move towards
Phase 4.

This pricing method works best for New Businesses or for

businesses who are Breaking Into an Existing, Competitive
Market.

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Product Cost to Produce $ -

Phase 1 Pricing $ -
Projected Units Sold 0
Projected Revenue $ -
Projected Gross Margin $ -

Phase 2 Pricing $ -
Projected Units Sold 0
Projected Revenue $ -
Projected Gross Margin $ -

Phase 3 Pricing $ -
Projected Units Sold 0
Projected Revenue $ -
Projected Gross Margin $ -

Phase 4 Pricing $ -
Projected Units Sold 0
Projected Revenue $ -
Projected Gross Margin $ -

Final Total
Total Projected Units Sold 0
Total Projected Revenue $ -
Total Projected Gross Margin $ -
 Premium Pricing
Also known as luxury or prestige pricing, this is w
Key companies price products high to present an imag
Pre-Filled Text Cells value, luxurious, or premium. It focuses on the pe
value of a product rather than the actual value or
Cells Will Auto-Populate production cost. Thus, this model is a direct funct
Enter Your Own Information brand awareness and brand perception.

Consider this stretegy for Fashion, Technology,

Luxury.
Unit Variable Cost $ -
Projected # of Units Sold 0

Choose whether you want to apply a percentage-based premium or a fixed dollar premium

Fixed Dollar Percentage-Based

Fixed Dollar Increase $ - Markup %
Unit Seeling Price $ - Unit Selling Price

Gross Revenue $ - Gross Revenue

Gross Margin $ - Gross Margin
s luxury or prestige pricing, this is when
ce products high to present an image of high-
us, or premium. It focuses on the perceived
duct rather than the actual value or
st. Thus, this model is a direct function of
ess and brand perception.

stretegy for Fashion, Technology, and

m or a fixed dollar premium.

0%
$ -

$ -
$ - Home
 Project-Based Pricing
Key
Pre-Filled Text Cells
Cells Will Auto-Populate
Enter Your Own Information
Average Cost of Project
Projected Number of Projects Annually
Projected Annual Revenue
A project-based pricing strategy is the opposit
pricing — this approach charges a flat fee per
instead of a direct exchange of money for tim
Pricing may be estimated based on the value o
deliverables. Those who choose this pricing st
also create a flat fee from the estimated time o
$ -
This pricing strategy is awesome for Consulta
0 Freelancers, Contractors, and other individu
$ - provide business services.
ect-based pricing strategy is the opposite of hourly
— this approach charges a flat fee per project
of a direct exchange of money for time.

g may be estimated based on the value of the project

ables. Those who choose this pricing strategy may
eate a flat fee from the estimated time of the project.

icing strategy is awesome for Consultants,

ncers, Contractors, and other individuals who
e business services.

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 Value-Based Pricing
Key
Pre-Filled Text Cells Here, companies price products
customer is willing to pay. Even
Cells Will Auto-Populate product, they decide to set their
Enter Your Own Information and data.

If used accurately, it can boost y

loyalty. It can also help you prio
How much is your customer willing to pay? $ - facets of your business, like ma
Unit Variable Cost (If Applicable) $ - Value-based pricing works well
Contribution Margin $ - be it for Products, Events, and

Projected # of Units Sold 0

Projected Revenue $ -
Projected Gross Revenue $ -
re, companies price products or services based on what the
tomer is willing to pay. Even if they can charge more for a
duct, they decide to set their prices based on customer interest
data.

sed accurately, it can boost your customer sentiment and

alty. It can also help you prioritize your customers in other
ets of your business, like marketing and service.

ue-based pricing works well in any price-sensitve industry –

it for Products, Events, and/or Services.

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