Pricing Corridor

The pricing corridor is the range between your price floor (below it you lose money) and your price ceiling (above it your ideal customer stops buying). Any price inside the corridor is fundamentally viable; the exact position is then a strategic decision.

Why the corridor is so useful

Without a corridor, every pricing discussion becomes a matter of taste: someone finds the price "too high", someone else "too low", and there is no criterion to settle the question. With a corridor, the discussion shifts from "which number feels right?" to "where in the proven range do we position ourselves, and why?".

Your position inside the corridor follows from strategy:

• Near the floor: penetration, fast customer acquisition, displacement.
• In the middle: a neutral position within the market.
• Near the ceiling: premium positioning, which requires a clearly provable differentiator.

The corridor is not static

Costs, competition, and proven value all change. A corridor that was narrow at launch can reach considerably higher after twelve months of references and case studies.

In the 9-step process, the pricing corridor is assembled in step 6 (price boundaries) from the results of the previous steps.