Setting up for Pricing Success in 2026: Actions to Take Before Year-End

This masterclass focuses on the foundational pricing moves that are easiest to make before the year closes and hardest to fix once the year begins. It covers governance, annual increase mechanics, and structural changes that enable higher ACVs and cleaner growth, helping teams enter the new year with more control and fewer reactive pricing decisions.

Host
James Wilton

Table of Contents

Duolingo's AI Strategy
Key Learnings from Duolingo's approach
Looking Forward - Strategic Pricing Priorities for Duolingo
Example H5

Key Takeaways

1. Discounting isn't always a pricing problem - it's often a governance opportunity

If discounting is rampant even when your price points are solid, the issue isn’t value - it’s control. The opportunity? Treat discounting as a strategic lever by enforcing guardrails: rules (“stick”), incentives (“carrot”), and enablement (“roller skate”). Companies that operationalize pricing governance reduce unnecessary discounting, boost realized ASP, and align Sales behind value-based pricing.

2. Annual price increases are an underused growth lever

Many teams hesitate to raise prices, even when value and costs have increased. But regular price increases are one of the lowest-effort, highest-impact growth moves you can make. The opportunity? Normalize annual increases tied to inflation or value gains. Even modest price lifts, implemented consistently, can drive revenue growth without net-new sales.

3. Your pricing structure may be silently capping ACV growth

If discounting is high and your top-tier offerings aren't converting, the issue may be structural - not tactical. The opportunity? Re-architect how you price: rethink metrics, simplify tiers, and ensure your model scales with customer value. Pricing transformations at this level can unlock step-function growth - not just optimize at the margins.

Recording

Setting up for Pricing Success in 2026: Actions to Take Before Year-End

This masterclass focuses on the foundational pricing moves that are easiest to make before the year closes and hardest to fix once the year begins. It covers governance, annual increase mechanics, and structural changes that enable higher ACVs and cleaner growth, helping teams enter the new year with more control and fewer reactive pricing decisions.

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