Does it make sense to offer an “unlimited” plan (all features with no caps) at a premium price, or will that undermine our ability to upsell as customers grow?

Based on the insights from Price to Scale, the answer is nuanced:

• An unlimited plan at a premium price can be attractive—especially to dominant or highly confident market players—because it provides predictable revenue and aligns with customers who truly need all features without worrying about usage limitations. This approach can be effective if you’re targeting customers who anticipate very high usage and are willing to commit upfront.

• However, taking on an unlimited plan means you may cap your upsell opportunities. As discussed in our pricing strategy book, upselling is fundamentally tied to additional value captured through growing usage or additional features. If customers already have access to everything without incremental costs, it becomes challenging to justify higher pricing tiers as their needs evolve.

• The book emphasizes designing your packaging strategy with flexibility in mind. This means if you introduce an unlimited offering, you should ensure it is well-aligned with your target customer’s usage patterns. For many customers, a tiered approach—with incremental upgrades—can preserve room for upselling while still capturing value as their needs increase.

In summary, while a premium unlimited plan can work in specific contexts, you must carefully balance it against the potential loss of upsell opportunities. Tailor your product packaging so that customers who start with a limited plan can naturally transition to higher-value offerings as their usage grows.