Optimize Offer & Price Fit

Find the combination that sells and pays.

What this recipe is for

Identifying which versions, price points, and package structures drive the most profitable demand—so you stop leaving money on the table or killing conversion with the wrong price.

What you’ll get

Clarity on which offers move and retain customers

A price structure that balances volume and margin

Quick experiments to validate willingness to pay

A shortlist of bundle/upsell opportunities that lift AOV

Key inputs

Current prices and variants

Sales volume by variant

Conversion rates (if you’re testing pages/offers)

Cost per delivery or fulfillment (to know margin)

Customer feedback or objections (qualitative signals)

Competitive reference points (optional for positioning)

Core logic

Revenue per sale = Price × Conversion.

Profitability depends on how price affects demand and margin.

The goal is to find the sweet spot where price maximizes per-customer value without collapsing conversion or damaging long-term demand.

Step-by-step actions

Step 1: Catalog current offers

List your core products/services, variants, and pricing tiers. Note performance (units sold, repeat rate).

Step 2: Measure relative value

Compare price to perceived benefit (customer feedback, usage patterns).

Identify friction points: where price feels too high or the offer feels underdelivering.

Step 3: Test price elasticity

Run small, controlled tests: increase/decrease price on a segment and observe conversion change.

Calculate approximate elasticity: % change in quantity / % change in price.

Step 4: Package & bundle strategically

Create logical upsells or tiered bundles that increase AOV with minimal extra friction.

Frame higher tiers with clear incremental value to justify price gaps.

Step 5: Align price with margin guardrails

Ensure each price point preserves enough margin after costs. If raising price drops conversion too much, improve value framing first.

Step 6: Validate with a quick win

Pick one offer, adjust either price or packaging, and measure the net revenue impact (price × quantity × margin) over a short period.

Decision thresholds / guardrails

Price increase causes conversion drop >20% → Refine value communication before keeping new price.

Tier gap isn’t justified by perceived benefit → Rework the value step or collapse tiers.

Bundle doesn’t improve AOV by at least the cost of complexity → Remove or simplify it.

Margin falls below target after delivery costs → Adjust price or reduce cost before scaling.

Examples

E-commerce:

Test a “premium bundle” that adds complementary items; if AOV rises 30% with only a 5% drop in conversion, it’s a win.

Service:

Offer a base package and a “priority” version; price the priority at 1.5× with clear added outcomes, then test uptake and retention.

Thinking checks

Which offer delivers the best profit per customer, not just revenue?

Are price differences justified by perceived / delivered value?

Where are customers dropping off—price, clarity, or lack of bundling?

Is the current structure easy for prospects to compare and choose?

If the answer is no…

Conversion collapsed after price change → revisit value messaging or test smaller steps.

No clear best-performing variant → simplify offers and run head-to-head tests.

Bundles confuse buyers → clarify benefits or separate them.

What to track (minimum)

Sales volume by variant

Conversion rate at each price point

AOV changes from bundling

Margin per offer

Customer feedback on perceived value

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