Pricing Strategies for Product Managers

Welcome and Introductions

Rina Alexin | 00:00–02:30
Welcome everyone to today’s webinar, “Pricing Strategies for Product Managers.” I’m Rina Alexin, CEO of Productside, calling in from sunny Miami, Florida. Thanks for joining us! We’re excited to talk about one of the most important and often overlooked aspects of product management—pricing strategy. Joining me today is Kenny Kranseler, Principal Consultant and longtime product leader at Productside.

Kenny Kranseler | 02:31–04:30
Thanks, Rina! Hi everyone, I’m Kenny Kranseler, based in Seattle, Washington. I’ve been in product management for over 25 years, leading teams at Microsoft, Amazon, and several startups before joining Productside five years ago. At Productside, I get to help product teams build better practices and drive more value through strategic alignment. Today, we’ll dive into practical ways for PMs to get a seat at the pricing table—and what strategies you can use to make pricing a lever for success.

About Productside

Rina Alexin | 04:31–06:30
If this is your first Productside webinar—welcome! We’re an outcome-driven consulting and training partner that helps organizations build modern product management capabilities. We focus on enabling real behavioral change across teams through coaching, frameworks, and training. Everything we do comes back to one thing—delivering measurable business outcomes.

Poll #1 – How Involved Are You in Pricing Decisions?

Rina Alexin | 06:31–07:30
Let’s start with a quick poll: how involved are you in your company’s pricing decisions? Do you have control, collaborate with other teams, or are you completely out of the loop?

Kenny Kranseler | 07:31–09:00
Looks like most of you are either collaborating or completely out of the loop—which doesn’t surprise me. Only about 6% say they have control. The truth is, many PMs aren’t invited to the pricing party—but that needs to change. Because pricing directly impacts value creation, PMs need to be involved, even if they’re not the final decision-makers.

Understanding Value and the Role of Pricing

Kenny Kranseler | 09:01–13:00
A core part of product management is maximizing value—for customers, the company, and partners. You can’t define value without understanding cost—and pricing is a huge part of that. Think about it this way: if you create an amazing product but it’s priced at $5 million, most customers won’t see value no matter how great it is. PMs must understand pricing to balance perceived value and cost.

Poll #2 – How Many Price Points Do You Manage?

Rina Alexin | 13:01–14:00
Let’s do another poll—how many different prices exist for your product? One standard price, negotiated per customer, or multiple pricing tiers?

Kenny Kranseler | 14:01–15:30
As expected, around 30% of you said pricing is negotiated per customer—that’s very common. It reflects how complex real-world pricing can be. PMs often work alongside sales, finance, and marketing to manage all the moving parts. Understanding this complexity helps you speak the language of stakeholders and make better decisions.

Key Pricing Models Every PM Should Know

Kenny Kranseler | 15:31–30:00
Let’s walk through seven foundational pricing models every product manager should understand:
1️⃣ **Cost-Based Pricing** – Add a markup to cover costs and profit. Simple, but it ignores customer perception.
2️⃣ **Value-Based Pricing** – Price based on perceived customer value (think Tesla or Apple).
3️⃣ **Penetration Pricing** – Set a low price to quickly gain market share, then increase later (like Adobe’s Creative Cloud launch).
4️⃣ **Skimming Pricing** – Start high to capture early adopters, then lower over time.
5️⃣ **Freemium Models** – Offer a free tier to grow users, then convert to paid (Spotify is the classic example).
6️⃣ **Dynamic Pricing** – Continuously adjust prices based on demand and supply (Uber, airlines).
7️⃣ **Geographic Pricing** – Adjust by region based on costs or purchasing power (fast food and SaaS both use this).

Each model can be used individually or in combination depending on your product, market maturity, and business goals.

How PMs Can Influence Pricing Decisions

Kenny Kranseler | 30:01–35:30
So, how do you get a seat at the pricing table? It starts with data and collaboration. PMs bring customer insights, competitive research, and market context. Build relationships with sales, finance, and marketing—position yourself as the bridge across teams. Even if you don’t own pricing, influence it by bringing real evidence to the discussion. Regularly share insights about customer value and competitor pricing trends.

Poll #3 – What’s Your Biggest Pricing Challenge?

Rina Alexin | 35:31–36:30
Let’s do one more poll. What’s your biggest challenge with pricing? Is it lack of involvement, unclear ownership, or proving value?

Kenny Kranseler | 36:31–37:30
Most of you said you don’t have enough visibility or influence. That’s the opportunity—start small, bring data, and make yourself indispensable in pricing discussions.

Applying Pricing Strategies: Case Studies

Kenny Kranseler | 37:31–44:30
We covered many examples, but let’s highlight a few:
– **Tesla:** Value-based pricing that aligns with innovation and brand perception.
– **Adobe:** Penetration pricing to drive subscription growth.
– **Apple:** Skimming model—high initial price for early adopters, followed by tiered versions.
– **Uber:** Dynamic surge pricing that balances driver supply and rider demand.
Each example shows how strategy connects to value and market maturity.

How to Advocate for PM Involvement in Pricing

Rina Alexin | 44:31–48:30
Even if you’re not currently part of the pricing committee, make your insights visible. Lead initiatives like customer research or willingness-to-pay analysis. Use frameworks like conjoint analysis to quantify perceived value. Present data to leadership showing how product and pricing impact outcomes. This builds trust and positions you as a strategic partner.

Q&A and Closing Remarks

Rina Alexin | 48:31–End
Thanks for joining today’s session! We hope you’re walking away with practical ideas for influencing pricing and understanding the strategic levers available to you. The recording will be posted on our website, and you’ll get a link by email shortly. Don’t forget to join our LinkedIn Product Management community—over 62,000 strong!

Kenny Kranseler | End
Thanks everyone—remember, pricing isn’t just a finance decision. It’s a product decision. Be curious, be informed, and make sure your voice is part of the pricing conversation. See you next time!