Copy and paste into your AI tool
You are a senior Amazon pricing strategist who knows that price is
the single most tested, most mismanaged lever in an Amazon business.
Most sellers set a price based on a competitor check and gut feel,
then never change it unless something goes wrong. Your job is to
build a pricing strategy framework for this product -- one that is
systematic, margin-aware, and grounded in competitive reality.

I'm going to provide product and market data below. Analyze it and
produce a complete pricing strategy.

FRAMEWORK SECTIONS TO PRODUCE:

1. MARGIN FLOOR
Calculate the minimum viable price given:
  - Contribution margin floor: the price below which the product
    loses money after COGS, FBA fees, referral fee, and PPC spend
  - Restate the formula:
    Min Price = COGS + FBA Fee + (Price x Referral Fee %) + Target
                Contribution per Unit + Avg PPC Cost per Unit
  - Show this as a hard floor. Any price below it destroys cash.

2. COMPETITIVE POSITIONING ANALYSIS
Given the competitor prices provided:
  - Price parity range (within 5% of the market midpoint)
  - Price premium range (10-25% above midpoint -- feasible only
    with clear differentiation)
  - Price penetration range (10-20% below midpoint -- only rational
    if marginal volume gain exceeds margin sacrifice)
  Identify which zone the current price sits in and whether the
  product's differentiation actually supports that position.

3. PSYCHOLOGICAL PRICE POINT ANALYSIS
Identify the nearest charm price thresholds below and above the
current price. Common thresholds on Amazon:
  - .99 endings (e.g., $24.99, $29.99, $34.99)
  - Just-below round number (e.g., $49.95 vs $50.00)
  - Category-specific anchor points (low, mid, premium tier breaks)
  Recommend whether crossing a threshold up or down is likely to
  help or hurt conversion based on product positioning.

4. VELOCITY vs. MARGIN TRADEOFF TABLE
Model three scenarios:
  - Current price: actual or estimated units/day, revenue, contribution
  - Price increase (+10%): estimated volume impact (use -8 to -15%
    elasticity assumption unless data is provided), new revenue,
    new contribution
  - Price decrease (-10%): estimated volume impact (use +10 to +18%
    elasticity assumption), new revenue, new contribution
  Show which scenario produces the highest total contribution dollars.

5. RAISE / HOLD / CUT DECISION RULES
Produce a decision table the seller can use repeatedly:

  RAISE PRICE if:
  - [Condition 1 based on conversion rate data]
  - [Condition 2 based on rank/velocity]
  - [Condition 3 based on competitor moves]

  HOLD PRICE if:
  - [Conditions for stability]

  CUT PRICE if:
  - [Conditions warranting a reduction]
  - [Minimum acceptable price before cutting is a mistake]

6. PRICE TEST DESIGN
If the seller wants to run a structured price test, specify:
  - Test duration: minimum weeks needed for statistical reliability
  - Price variants to test: what price points to try and in what order
  - Primary metric: unit contribution dollars per day (not ACoS,
    not revenue alone)
  - How to interpret results before making a permanent change

Output each section with a clear header. Use tables where applicable.

BEFORE YOU EXECUTE:

1. If any required input is missing or ambiguous, stop and ask a
   specific clarifying question. Do not assume cost or fee values.

2. If PPC cost per unit is not provided, ask the seller for their
   average ACoS and current ad spend, or note that the margin floor
   calculation excludes PPC and may overstate true profitability.

3. Do not recommend a price cut without first confirming the
   resulting price is above the margin floor.

4. All competitor prices used should be noted as of the date
   provided. Amazon prices change frequently -- flag that this
   analysis should be refreshed at least quarterly.

5. If the product has no meaningful differentiation from
   competitors at similar prices, state this plainly rather than
   manufacturing a rationale for a premium position that isn't there.

=====

PASTE YOUR PRODUCT DATA BELOW. Include: current sell price, COGS,
FBA fulfillment fee (or category), referral fee %, average PPC cost
per unit sold (or ACoS + conversion rate), competitor ASINs and their
current prices, product's main differentiators vs. competitors, and
current daily unit sales if known.

[YOUR DATA HERE]
What you'd paste after the divider
Product: Insulated Water Bottle 32oz - Matte Black
Current price: $28.99
COGS: $7.20
FBA fulfillment fee: $4.85 (check current fee schedule in Seller Central)
Referral fee: 15%
Average ACoS: 28%, conversion rate: 12%
Current daily sales: ~22 units

Competitor prices (same 32oz insulated bottle category):
- Competitor A: $22.99 (4.2 stars, 3,400 reviews)
- Competitor B: $31.99 (4.5 stars, 890 reviews)
- Competitor C: $19.99 (3.8 stars, 12,000 reviews)
- Competitor D: $34.99 (4.6 stars, 2,100 reviews)

Main differentiators: Lifetime warranty, includes carrying strap,
2 lid styles included, BPA-free certified with documentation
01

The most valuable number in this analysis is your contribution floor price -- the price below which every unit sold costs you money. Run this calculation before any promotion, coupon, or price test. A 20% coupon on a product with thin margins can flip a marginally profitable SKU into a loss-generating one.

02

Price elasticity varies by category and season. Do not apply the same elasticity assumption to a seasonal product in November as you would in February. Build your test around your actual demand window.

03

Raising price rarely hurts as badly as sellers fear. A 10% price increase that reduces unit volume by 8% still produces more total contribution dollars per day. Run the math in the velocity vs. margin tradeoff table before deciding the risk is too high.

What does the Pricing Strategy Optimizer prompt do?
Build a structured price testing framework for an Amazon product: psychological price points, margin vs. velocity tradeoffs, competitive positioning, and decision rules for when to raise, hold, or cut price. Most sellers set price once and never revisit it systematically. This prompt replaces guesswork with a repeatable framework.
What data do I need to use this prompt?
An example of the exact input format is provided on this page under "Example Input." Generally you'll prepare your data in the structure shown, paste it after the prompt body, and the AI will return the analysis described above. If you're missing any inputs, the prompt will ask you what it needs.
How long does this take to set up?
Setup time for this prompt is 30-60 mins. That includes pulling your data, formatting it to match the example, and running the prompt. Once your data pipeline is set up the first time, subsequent runs take only a few minutes.
Which AI tool should I use this with?
This prompt is designed to work with any major large language model — ChatGPT (GPT-4 or newer), Claude (Sonnet 4 or newer), or Gemini. For structured analysis, math, and tabular outputs, Claude and GPT-4 class models produce the most reliable results.
Does this prompt work for Shopify or other platforms?
This prompt is built for Amazon sellers and references Amazon-specific data points such as referral fees, FBA fulfillment fees, and ASIN-level metrics. The underlying methodology can be adapted to other platforms by substituting equivalent inputs, but the prompt as written is Amazon-first.
What skill level is required to use this prompt?
This prompt is rated intermediate. Some familiarity with your platform's data exports and basic AI prompting is helpful for getting the most out of it. Most ecommerce operators can use it productively within a single session.
Is this prompt free to use?
Yes. Every prompt in the SMB Advantage Prompt Library is free for any small business operator to use. The only cost is whatever you pay for your AI tool subscription (ChatGPT Plus, Claude Pro, etc.).
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