What is pricing strategy?

A pricing strategy is the deliberate approach a company takes to setting prices: the anchor logic (cost-plus, value-based, or competition-based), the metric prices scale on (seats, usage, revenue), and how it all packages into plans and tiers. It answers not just “what do we charge” but “what are we charging for, and relative to what.”

No strategy escapes the competitive context — buyers see your price next to the alternatives’ regardless of how you derived it. That is why pricing work pairs naturally with price monitoring: competitors reprice and repackage constantly, and a pricing strategy set against last year’s competitive landscape is quietly out of date.