# PRICING STRATEGY — US VARIANT

> **Region:** United States, Canada
> **Primary currency:** USD (US Dollar). Canada: CAD (1 USD ~ 1.35 CAD; show CAD separately when targeting CA)
> **Decimal convention:** Period as decimal separator (`$9.99`, `$1,299.00`)
> **Charm pricing:** `$9.99`, `$29.99`, `$99` (round for premium B2B)
> **Subscription dominance:** Monthly billing standard; annual = -15% to -25%

---

## US currency formatting rules

| Style | Example | When |
|-------|---------|------|
| Basic charm | `$9.99` | B2C consumer goods |
| Higher charm | `$29.99` `$49.99` `$99.99` | DTC mid-tier |
| Round B2B | `$99/mo`, `$299/mo`, `$999/mo` | SaaS, business tools |
| Premium clean | `$1,299` (no `.99`) | Luxury, high-ticket |
| Subscription | `$29/mo` or `$29/month` | Recurring products |
| Annual savings | `$290/year (save 17%)` | Annual upsell |
| Free trial | `Free 14 days, then $29/mo` | SaaS standard |

### Period vs. comma

- US uses **period as decimal**: `$1,234.56` (comma for thousands, period for decimals)
- Canada same convention as US for English; French Canada uses commas (`1 234,56 $`)

---

## US pricing psychology

### Subscription fatigue (real)

US consumers average 12+ active subscriptions in 2025. Pricing implications:

- **Annual prepay** lifts: offer 15-25% off annual
- **Multi-year locks** for B2B: 3-year prepay = 30-40% off list
- **"Pause subscription"** option reduces churn vs. cancel
- **Bundle competing services** to consolidate fatigue (e.g. Disney+/Hulu/ESPN)

### Charm pricing — when to use

- **Use charm:** Mass market B2C (`$19.99`, `$29.99`)
- **Avoid charm:** Premium / luxury (`$1,299` not `$1,299.99`)
- **B2B SaaS:** Round numbers (`$99`, `$299`, `$999`) — feels more credible
- **Enterprise:** "Contact sales" no public price (justified above $50K ARR)

### Anchor effect — pricing page convention

```
Free tier              -> entry, large funnel
Starter:    $29/mo     -> price-sensitive, 20-30% conversion
Professional: $99/mo   -> TARGET (50-60% pick this)
Business:   $299/mo    -> ambitious teams, 10-15%
Enterprise: Contact sales -> high-value, 1-3%
```

### Decoy effect — DTC standard

```
A. Single bottle:       $29 (poor value per unit)
B. 3-pack:              $79 (decoy - "save $8")
C. 6-pack + free ship:  $129 (target - "save $45 + free shipping")
```

---

## US tier conventions by industry

### B2C DTC (skincare, supplements, apparel)

| Tier | Price | Strategy |
|------|-------|---------|
| Lead-in | `$19.99` (small) | Trial size, low friction |
| Core | `$39.99` (full) | 60% of revenue |
| Bundle | `$99` (3-pack) | AOV lift, subscribe & save 15% |

### B2C subscription (Netflix, Spotify, Disney+)

| Tier | Price | Strategy |
|------|-------|---------|
| Ad-supported | `$6.99-$9.99/mo` | Capture price-sensitive |
| Standard | `$15.99-$17.99/mo` | Target |
| Premium / 4K | `$22.99-$24.99/mo` | Anchor + power users |
| Annual | -10 to -20% | Cash-flow win |

### B2B SaaS (small to mid-market)

| Tier | Price | Strategy |
|------|-------|---------|
| Free | $0 | Top of funnel |
| Starter | `$29-$49/mo` | Self-serve, solo users |
| Pro | `$99-$199/mo` | Small teams; TARGET |
| Business | `$299-$499/mo` | Mid-market |
| Enterprise | Contact sales | Sales-led, $30K+ ARR |

### B2B SaaS (enterprise, high-ticket)

| Tier | Price | Strategy |
|------|-------|---------|
| Pro | `$499/mo` (5-seat min) | Small co. anchor |
| Business | `$1,499/mo` | Mid-market target |
| Enterprise | Custom (typ. $50K-$500K ARR) | Sales-only |

---

## US pricing page conventions

### Layout

```
[Logo bar with nav]
[Hero: "Simple pricing. No surprises."]
[Toggle: Monthly | Annual (Save 17%)]
[3-4 tier cards horizontal — middle highlighted]
[Feature comparison table]
[Customer logos / "Trusted by 1,200+ teams"]
[FAQ accordion]
[CTA: "Start free trial" or "Talk to sales"]
[Footer]
```

### Must-haves

- **Visible prices** (B2C: ALWAYS; B2B: at least starter and pro tiers)
- **"Most popular" badge** on target tier
- **Money-back guarantee** (14-30 days) — major US convention
- **Free trial** for SaaS — 14 days standard
- **No credit card required** for trial — lifts conversion 30-50%

### What kills conversion in US

- "Contact us for pricing" everywhere (B2C deal-killer)
- Hidden fees / surprise charges
- Setup fees not mentioned upfront
- Forced annual billing only

---

## US sales tax (different from EU VAT)

US sales tax varies by state (0% to 10%+). **You charge tax based on where the customer ships, not where you ship from** (post-Wayfair 2018).

- **Display prices excluding tax** (US convention) — "+ tax" added at checkout
- **EXCEPT: California, Texas, Florida** — tax-inclusive often shown for retail
- For SaaS: many US states now tax SaaS (NY, TX, WA, etc.)
- Use Avalara, TaxJar, or Stripe Tax to automate

---

## Dropshipping pricing — US specifics

US has highest CPM ad costs globally, so dropship markup must be highest:

| Product cost | US sale price (recommended) | Markup | Why high |
|-------------|----------------------------|--------|---------|
| `$3-5` | `$24.99-$39.99` | 6-8x | Meta CPM USD 15-25; need ad budget |
| `$5-10` | `$39.99-$59.99` | 5-7x | Same |
| `$10-20` | `$49.99-$99.99` | 4-5x | Lower-volume markets need margin |
| `$20-40` | `$79.99-$149` | 3-4x | Premium positioning |

### Free shipping threshold

- Set at 1.5x AOV (e.g. AOV `$50` -> free ship over `$75`)
- Stat: free shipping lifts AOV by 25-30%

---

## US payment methods

- Credit card: 60-70% (Visa, Mastercard, Amex, Discover)
- Buy Now Pay Later (BNPL): 15-25% (Klarna, Afterpay, Affirm, PayPal Pay-in-4)
- PayPal: 15-20%
- Apple Pay / Google Pay: 10-15%
- Cash App / Venmo: B2C niche
- ACH / wire: B2B enterprise

**BNPL note:** Adding Klarna/Afterpay typically lifts AOV 30-40% by enabling higher-priced purchases.

---

## US benchmarks — pricing-specific (2025-2026)

| Metric | Range |
|--------|-------|
| DTC AOV | `$45-$120` |
| SaaS ACV (SMB) | `$3K-$15K/year` |
| SaaS ACV (mid-market) | `$15K-$100K/year` |
| SaaS ACV (enterprise) | `$100K-$1M+/year` |
| Annual prepay uptake | 25-40% of new subs |
| Discount uptake | 50-70% (US loves coupons) |
| Trial-to-paid | 15-25% (good), 25%+ (great) |
| Price-test winning rate | 30-40% of tests show meaningful lift |

---

## US pricing checklist

- [ ] Currency `$` with period decimal (`$9.99`)
- [ ] Charm pricing for B2C, round for B2B
- [ ] 3-4 tier structure with middle highlighted
- [ ] Monthly + annual toggle (annual -15-25%)
- [ ] Money-back guarantee or refund policy
- [ ] Free trial without card for SaaS
- [ ] Sales tax handled (display +tax convention)
- [ ] Free shipping threshold (DTC)
- [ ] BNPL option (Klarna/Afterpay) if AOV >`$50`
- [ ] If dropshipping: 3-8x markup based on cost tier

---

*US Variant | Global Skill 17 | Over Powers Agency | v1.0.0*
