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Estd 4.22.2023
Below is a summary of the recommended approach based on insights from our pricing strategy book, Price to Scale:
- Direct Answer
The book doesn’t prescribe one absolute method but suggests that clarity is key. If you’re unable to support or accurately price certain geographies, you have two primary options:
- Geo-block sign-ups from those regions and clearly note regional availability.
- Accept global sign-ups at your default pricing while being prepared to manage outlier cases through tailored sales discussions.
Supporting Details from the Book
• In Price to Scale, we introduce frameworks to build clarity into your pricing strategy, such as the grid that lists features and their availability across geographies. This emphasizes the importance of making regional constraints explicit to limit confusion (as discussed on page 97).
• The book also recognizes that many companies start with a simplified, global pricing model and adjust as they grow, which is why some businesses opt for default pricing while handling challenges case-by-case.Contextual Considerations
• Geo-blocking can prevent potential support headaches when you’re not set up to serve a particular region. It also helps avoid setting pricing expectations that may require later adjustment.
• However, accepting global sign-ups and dealing with the challenges later can accelerate growth, though you must prepare to make on-the-fly adaptations and acknowledge the complexity introduced in sales and support.Practical Application
Review your operational readiness and support model:
- If you’re early in your journey and haven’t localized pricing, consider geo-blocking and clearly communicating where your service is available.
- Alternatively, if your go-to-market model can absorb regional variability, default pricing may work and allow more flexibility. Just ensure you have a plan to address questions—using detailed pricing and feature grids can help streamline these discussions.
Summary:
Price to Scale recommends aligning the approach with both your operational capacity and your strategic pricing vision. Whether you choose to geo-block sign-ups or accept them globally with default pricing, clarity in communication (such as with a comprehensive pricing grid) remains central. This clarity helps manage customer expectations and supports consistent pricing evolution as your market matures.