Competitive Analysis
Evaluating Competitor Pricing Strategies
This prompt helps teams analyze competitors’ pricing models, structures, and strategies to understand market positioning and develop competitive pricing for their product. It provides insights into opportunities for value differentiation or optimization of pricing tiers.
Responsible:
Product Management
Accountable, Informed or Consulted:
Product, Marketing, Sales, Strategy
THE PREP
Creating effective prompts involves tailoring them with detailed, relevant information and uploading documents that provide the best context. Prompts act as a framework to guide the response, but specificity and customization ensure the most accurate and helpful results. Use these prep tips to get the most out of this prompt:
Gather competitor pricing data from public sources, such as websites or marketing materials.
Collect user feedback or reviews that mention pricing satisfaction or concerns.
Define business objectives for pricing (e.g., maximizing revenue, increasing market share).
THE PROMPT
Analyze the pricing strategies of competitors for [industry or product category] and compare them to [product/service name]. For each competitor, evaluate:
Pricing models (e.g., subscription-based, one-time purchase, freemium, tiered plans).
Value offered at different price points, including features, limits, or support options.
Perceived fairness or attractiveness of their pricing to users (based on reviews or feedback).
Opportunities for [product/service name] to differentiate, optimize, or add value to its pricing.
If additional details about competitors, pricing tiers, or user demographics are needed, ask clarifying questions to refine the analysis.
Bonus Add-On Prompts
Identify gaps in competitors’ pricing tiers and suggest value-add opportunities for [product/service name].
Propose adjustments to [product/service name]’s pricing strategy to improve competitiveness.
Highlight user feedback about pricing pain points in competitor offerings.
Use AI responsibly by verifying its outputs, as it may occasionally generate inaccurate or incomplete information. Treat AI as a tool to support your decision-making, ensuring human oversight and professional judgment for critical or sensitive use cases.
SUGGESTIONS TO IMPROVE
Include a regional analysis if pricing varies across geographic markets.
Add comparisons for enterprise vs. individual pricing models, if applicable.
Incorporate discounts or promotions into pricing evaluations.
Highlight differences in perceived vs. actual value across competitor tiers.
Tailor recommendations for specific customer segments or industries.
WHEN TO USE
To refine pricing strategies for a competitive advantage.
During a market entry analysis to align pricing with user expectations.
When launching new tiers or adjusting existing pricing models.
WHEN NOT TO USE
If competitor pricing data is inaccessible or ambiguous.
When focusing solely on non-monetary value propositions.