PRICING FIXED IN 15 MINUTES
Unapologetically Smart Pricing in Five Moves — Thanks to the F*C K Framework
Download the workbook here!
One of my first jobs after completing my PhD was at the world’s leading pricing consultancy. No matter how far I’ve wandered since, I always seem to find my way back to pricing.
You might know the many textbooks on pricing—packed with models, techniques, and categories. But let’s be honest: complexity can paralyze.
A confused mind doesn’t act. That’s why I simplify. Simplicity comes when you fix the right variables. That’s the idea behind the F*C K framework—a five-step method to pricing that’s clear, fast, and effective.
F – Frame
Once, software was priced like bread: 10 bucks a pop. Today, it’s often priced by time, user, or usage—just like gyms or Netflix. In B2B or marketplaces, prices are often negotiable.
All of these are pricing frames (a.k.a. revenue models). Choosing the right one is the first step. It depends on your category, product, and audience. The safest bet? Start with what already works in your market.
Pricing is like a game. Set the rules before you play—and pick rules customers already know.
C – Context
A bottle of water costs €3 at the airport and €0.30 at ALDI—and both are seen as fair. Pet food brands charge more in boutique stores than supermarkets. Thermomix doesn’t sell in stores at all—they use direct sales through product advocates.
Context shapes perceived value. And each context can justify a different price—depending on the competition, buying occasion, and audience.
Pricing is like a chameleon—it changes color with its environment.
F – Features
A 4WD vehicle costs more. So does a laptop with an i7 chip. VIP seating? Premium price. Organic snacks? More expensive.
Price must reflect value—and features create value. But not automatically. Many brands jump into pricing research (like conjoint studies) before even defining the features that matter.
Don’t price the cake before you’ve baked it.
C – Communication
When Sonos launched the Move and Roam speakers, they asked SUPRA to test their positioning. Using Causal AI, we found a problem: customers mistook them for generic Bluetooth speakers.
A simple change in claim and copy turned the launch around.
Features are facts. Pricing depends on perceived value.
A diamond in the dust sells for a penny. The message has to land.
K – Key Price Setting
This is where most pricing strategies fall apart. Companies rely on gut feel, cost-plus formulas, or competitor copying. Pricing studies often stop short of recommending profit-maximizing prices. And yes—steps 1–4 should come first.
But step 5 still matters.
Key price setting is the orphan at the strategy table—overlooked, underfed, and passed around.
Let’s give it the attention it deserves.
Methods for Setting the Right Price Level
Expert Judgement
Don’t have customer data? Ask your internal experts. Collect their estimates and use them to build a rough demand curve.
Multiply expected volume by price, subtract costs, and you’ll get a rough profit estimate. It’s not perfect—but it beats most “back-of-the-napkin” pricing.
Synthetic Respondents (AI)
With a well-trained digital twin of your customer, you can simulate purchase likelihood at different prices in seconds.
At app.supra.tools, we’ve built this capability. It’s been calibrated against dozens of real-world studies—and in 90% of cases, it matched the real optimal price point.
It’s still free for light use (May 2025).
DIY Surveys (Van Westendorp & Gabor-Granger)
On low-cost research platforms:
Van Westendorp defines an acceptable price range but ignores margin and cost.
Gabor-Granger stages pricing questions (“Would you buy at €10? €9? €8?”) to generate a direct price–demand curve.
Simple but effective.
Sales Data Analysis
Sounds obvious: analyze historic prices and volumes. But:
Retail data is expensive.
You only get insights on tested price points.
Sales are influenced by many factors beyond price (promotions, seasonality, etc.).
Useful—but limited.
Implicit Price Intelligence (via SUPRA.tools)
This method tests how real people intuitively respond to your product and pricing—without asking directly.
It reveals what “feels right” based on behavioral responses. Upload your product picture, description, and price points—get a demand curve based on actual buyer psychology. Add your cost structure, and find the profit-maximizing price.
A recent academic study at the University of Ostfalia proved this method outperforms traditional pricing research.
Special Cases & Psychology
Think your case is unique? You’re probably right. But here’s how to deal with it:
Price Psychology: Thresholds, charm pricing, etc. Test them via any of the above methods.
Retail: Retailers price for foot traffic and category strategy. But even bait prices can be optimized.
Bundles: Price the parts, then the bundle.
Portfolios: Use anchoring. Set clear roles for premium, mid-tier, and entry products.
Add-ons: Price them like standalone products. They matter more than you think.
Price for Profits
Too many brands treat pricing as an afterthought.
But pricing is a strategy, not a number. The F*C K framework helps you align everything—frame, context, features, communication—to support a price point that drives profit.
With tools like Implicit Price Intelligence, even small brands can now price like pros.
The opportunity is real. The tools exist.
The worst pricing decision is to do nothing.
🔧 Get Started Today
Download the full workbook and AI prompts to simulate your own price-demand curve at https://10xinsights.substack.com/