A formal document that presents the recommended pricing strategies based on the cost analysis and market research
SayPro Documents Required from Employees
Pricing Strategy Document
Derived from SayPro Monthly SCMR-1 and Quarterly Costing & Pricing Reports
📘 Purpose:
The Pricing Strategy Document is a formal submission prepared by the Pricing Team in collaboration with Finance, Marketing, and Sales departments. It outlines recommended pricing strategies grounded in cost analysis (from SCMR-1) and market research. This document directly informs SayPro’s product/service pricing models, revenue goals, and competitive positioning.
This strategy is used to guide pricing decisions across SayPro’s offerings and is vital for quarterly reviews and executive planning.
📄 1. Key Sections of the Pricing Strategy Document
🧾 1.1 Executive Summary
A brief summary of:
- Pricing goals for the quarter/year
- Key insights from cost and market analysis
- Strategic pricing approach (penetration, skimming, value-based, etc.)
- Expected impact on revenue, customer acquisition, or market share
💰 1.2 Cost-Based Pricing Recommendations
Derived directly from the SayPro Monthly January SCMR-1 Report.
Inclusions:
- Updated unit cost per product/service
- Suggested markup percentages by category
- Targeted contribution margin per unit
- Suggested price adjustment (increase/decrease) based on cost movement
Example:
| Product | Unit Cost (Jan) | Previous Price | Suggested Price | Markup % | Reason |
|---|---|---|---|---|---|
| Service A | R150.00 | R280.00 | R300.00 | 100% | Labor costs increased |
| Product B | R85.00 | R120.00 | R115.00 | 35% | Material cost dropped |
🔍 1.3 Market-Driven Pricing Insights
Informed by the Market Research Report, including competitor pricing and customer behavior.
Inclusions:
- Price positioning (low, medium, premium)
- Competitive benchmarking
- Price sensitivity analysis
- Price elasticity considerations
Example Analysis:
“Customers in Segment X showed strong responsiveness to price drops. Competitor Y recently reduced their service package by 10%, resulting in increased online traction. We recommend adjusting our bundled pricing accordingly.”
📊 1.4 Pricing Models and Structure
A breakdown of how SayPro will implement new or adjusted pricing.
Options:
- Tiered Pricing (Basic, Standard, Premium)
- Subscription Plans (monthly, quarterly, annual)
- Geographic-Based Pricing (if regional demand varies)
- Value-Based Pricing (based on perceived customer value)
- Dynamic Pricing (if applicable)
🎯 1.5 Strategic Objectives and KPIs
Defines how the pricing strategy supports broader business goals.
KPIs to Track:
- Average Revenue Per Unit (ARPU)
- Gross Margin %
- Conversion Rate
- Customer Lifetime Value (CLTV)
- Market Share Increase
🔁 1.6 Implementation Timeline
Roadmap for when pricing changes will go live, including internal testing and external communication.
| Milestone | Responsible | Date |
|---|---|---|
| Internal Review | Pricing & Finance | Jan 10 |
| Stakeholder Approval | Exec Team | Jan 15 |
| System Updates | IT & Ops | Jan 20 |
| Customer Announcement | Marketing | Jan 25 |
| Go-Live | All Teams | Feb 1 |
📑 1.7 Risk Assessment & Mitigation
Assessment of potential risks associated with price changes.
Considerations:
- Customer pushback or churn
- Competitive undercutting
- Supply chain cost volatility
- Regulatory compliance (if applicable)
Mitigation Tactics:
- Gradual implementation
- Pilot testing in select markets
- Customer communication plans
📝 1.8 Approvals and Sign-Off
Final section capturing review and authorization by senior leadership.
| Name | Title | Signature | Date |
|---|---|---|---|
| Head of Pricing | |||
| CFO | |||
| COO |
✅ Employee Submission Checklist
| Document | Responsible | Format | Due Date |
|---|---|---|---|
| Pricing Strategy Document | Pricing Analyst / Finance | PDF / Word | Last week of each quarter |
| Cost Summary (from SCMR-1) | Finance Team | Excel/PDF Appendix | Monthly |
| Market Research Highlights | Marketing/Research Team | Summary Slides | Quarterly |
| Approval Sheet | Strategy Office | Attached |
📥 Submission Portal
All Pricing Strategy Documents must be uploaded to the SayPro Strategic Pricing Hub:Documents > PricingStrategy > [Quarter] > [Department]
File naming format:
PricingStrategy_Q1_2025_SayPro_[TeamName].pdf
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