Pricing
Pricing Playbook: Profit Without Losing Volume
Pricing is a lever, not a guess. Use these plays to lift margin without scaring off demand.
Start with the unit economics
Know true COGS, pick/pack, payment fees, shipping, and support cost. Price must protect contribution margin at target discounts.
- Contribution Margin floor: 60%+ for paid growth
- Discount budget: pre-decide your yearly pool
Bundles that feel like upgrades
Bundle complements, not duplicates. Anchor with a compare-at price and show per-unit savings.
- Offer 3 options: Good / Better / Best
- Preselect ‘Better’ with real added value
Price testing without chaos
Use geo splits or timeboxed tests. Keep ads constant; only price changes.
Watch CR, AOV, and refund sentiment simultaneously.
Discounts that train the right behavior
Reward multipack, subscription, or first-order with constraints (limited time, limited units). Avoid constant sitewide codes.
Communicate value, not just price
Translate materials, warranty, and outcomes into simple value statements near the price block.
#Bundles#Discounts#Elasticity