Worksheet · B2C: Consumer Pricing Health Check
Rebuild one price ladder
Most ladders are historical accidents: options added one at a time, with gaps nobody chose. This sheet rebuilds one ladder so the entry price defends, the gaps trade customers up and the top rung earns its margin. It builds the Competent step of the check:
A deliberate ladder (good-better-best, sizes, bundles) exists with sensible gaps customers understand.
Step 1. The ladder today
| Rung | Product or version | Price | Gap to the rung below (%) | Share of units | Margin (%) | What the customer gets for the step up |
|---|---|---|---|---|---|---|
| e.g. Better | Standard plus | $79 | +32% | 22% | 41% | Hard to say |
If you cannot say in one sentence what the step up buys, the customer cannot either.
Step 2. The design
| Rung | Its job | Price | Gap to the rung below | Target share of units | Margin (%) | The step up, in one sentence |
|---|---|---|---|---|---|---|
| Entry | Stop customers leaving for a cheap alternative | |||||
| Middle | Where most customers land | |||||
| Top | Set the reference and earn margin |
Check where the entry rung sits in the market. If it is among the cheapest, it can drag down how customers see the rungs above it.
Step 3. Watch it
| Month | Share of units by rung (entry, middle, top) | Share trading up from entry | Margin (%) |
|---|---|---|---|
Done when: the ladder has gaps you chose, each step up is explained in one sentence a customer understands, and share by rung is tracked.
Adapted from our own pricing approach (PSP, 2007).
From the B2C: Consumer Pricing Health Check. Your report links the sheet for each of its moves.