For higher-tier plans, should we allow unlimited usage (focusing pricing on features and service level) or impose usage caps for fairness and revenue protection? How do we ensure an “unlimited” plan still aligns with providing value?

Below is an answer based on the insights from our pricing strategy book, Price to Scale:

Direct Answer
For higher-tier plans, you have two viable paths:
• Allowing unlimited usage and focusing on pricing around features and service levels, or
• Imposing usage caps to protect fairness and revenue.

While both strategies can work, the key is to design your pricing model so that it remains aligned with customer value and your revenue goals.

Building on Concepts from Price to Scale
Our book explains that a feature-based pricing model can help companies deliver continued value even when individual features become commoditized. In higher-tier plans, if you opt for unlimited usage, you shift the focus to the quality of features and the level of service. This means that, even though usage is “unlimited,” the real value (and justification for the higher price) comes from the richer capabilities or premium support levels provided.
Ensuring an “Unlimited” Plan Still Delivers Value
To keep any unlimited plan in line with providing value:

• Set Clear Value Drivers:
Focus on differentiating elements such as enhanced features, superior performance, or dedicated service levels. This approach ensures that customers are paying for a comprehensive, premium experience rather than solely for abundant usage.

• Monitor and Manage Usage:
Even without explicit caps, implement internal controls and periodic reviews to identify outlier usage patterns. This allows you to engage customers whose usage significantly deviates from expected norms – whether to offer a custom plan or discuss additional usage safeguards.

• Maintain Flexibility:
As discussed in Price to Scale, pricing models aren’t static. Regularly evaluating your pricing strategy in light of market and product evolution lets you adjust features, pricing tiers, or even introduce new usage measures over time. This adaptability ensures that an unlimited plan continues to capture value while protecting revenue integrity.

Balancing Fairness and Revenue Protection
If you decide on an unlimited usage plan, consider “soft” usage guidelines that empower your sales or customer success teams to address situations where usage might unexpectedly impact your cost structure. Such guidelines can act as a safeguard without compromising the simplicity and appeal of an unlimited offering.
Takeaway
Ultimately, whether to impose usage caps or offer unlimited usage for higher-tier plans depends on your market context and the predictability of usage metrics. If you’re confident that your high-tier customers will draw value primarily through advanced features and service levels, an unlimited plan can work well—provided you have mechanisms in place for monitoring, periodic review, and adaptability.

By focusing on value drivers and implementing internal checks, you can ensure that your unlimited plan remains both attractive to customers and sustainable for your business.