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Pricing Strategy Handbook
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CH01 Pricing Prerequisite Checklist Worksheet

Answer in the Worksheet Writer and save as Markdown

This worksheet is for checking, before discussing Price, the prerequisites that need to be confirmed from the perspective in KM043 that “Price is the outcome of the business model.” It introduces no new framework, and uses only the questions and logic of CH01’s body text and its underlying sources, KM043, KM018, KM019, KM020, KM031, and KM047.

A. Confirming Prerequisites (What Should Already Be Organized)

The items below are covered elsewhere in this Handbook. Before discussing Price, first check whether they have been organized. (Basis: KM018, KM019, KM020, KM031)

  1. Customer Definition

    • Is our customer expressed only as a broad noun, such as “women in their 20s–30s” or “the mass market”?
    • Can you explain how defining the customer changes the market’s name, size, competitive structure, and channels?
    • Organized / [ ] Needs organizing

  2. Distinguishing User, Buyer, and Payer

    • Who is the User experiencing the problem, the Buyer deciding the purchase, and the Payer paying the cost, respectively?
    • Are these three roles the same person, or are they separated?
    • Organized / [ ] Needs organizing

  3. Purchase Logic by Transaction Type (B2C, B2B, B2G)

    • Which of B2C, B2B, or B2G does this transaction correspond to?
    • Is what drives the purchase an individual’s inconvenience or desire, organizational performance, or budget/legislation/procurement method?
    • Organized / [ ] Needs organizing

  4. Value Proposition

    • Are a specific customer’s problem, the solution provided, and the reason for choosing it over existing alternatives connected into a single logic?
    • Have you reflected that the point emphasized in the Value Proposition differs depending on transaction type (B2C/B2B/B2G)?
    • Organized / [ ] Needs organizing

If even one of the four items above is “Needs organizing,” do not set Price yet. Return first to the chapter covering that prerequisite (customer definition, purchase structure, Value Proposition) and organize it there.

B. Checking Price as an Outcome of the Business Model (Basis: KM043)

  1. Elements Price Should Reflect

    • How does this price reflect each of the following elements?
      • Customer: ______________________
      • The customer’s problem: ______________________
      • The value provided: ______________________
      • The method (channel) of delivering the value: ______________________
      • The cost involved in that process: ______________________

  2. Consistency with Business Model Elements

    • Can the cost structure created by key resources/key activities sustain this price?
    • What margin, fee, and negotiating-power effect does the chosen channel (direct sales/indirect channel/partner) have on the price structure?
    • Can this price cover the cost of maintaining the customer relationship?
    • Are the above elements connected without contradiction? (Consistency check)
    • Consistent / [ ] Contradiction found — Description: ______________________

C. Checking Competition and Positioning (Basis: KM047)

  1. Defining the Competitor

    • Is the “competitor” we are comparing against a solution that provides similar customer value to the same customer segment, or are we comparing it simply because it is in the same product category?
    • Defined by customer and value / [ ] Compared only by category

  2. Positioning Signal

    • What quality/brand position is this price likely to be interpreted as by customers?
    • If entering at a low price, are you prepared to bear the cost and time required to move to the premium market afterward?
    • If entering at a high price, are the product/service, customer experience, channel, and brand in place to justify it?

D. Overall Judgment

  • After checking A through C above, summarize in one sentence whether this price can be explained as the outcome of the business model, rather than as “the number attached after the product is finished.”

Source Map

  • KM: KM043 (primary), KM018, KM019, KM020, KM031, KM047