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Estd 4.22.2023
Based on the guidance in our pricing strategy book, Price to Scale, there isn’t a one‐size‐fits-all answer—you have two primary approaches, each with its advantages.
• Good-Better-Best Packaging (Bundled Pricing):
This model groups related features or modules together into clearly defined packages. It’s especially effective when your customer base is segmented (for example, SMBs, mid-market, or enterprise) and each group values convenience and speed in decision-making. In this scenario, you offer a single combined price for the full package, which simplifies purchasing and often drives deal velocity. (See Chapter 2 of Price to Scale.)
• Modular (à la Carte) Pricing with Bundle Discounts:
Alternatively, if your suite comprises modules that each deliver distinct and measurable value—and where customers might need only select capabilities—a modular approach can work well. Here, you’d price individual modules separately, allowing customers to add features on an as-needed basis. You can also offer a discount when these modules are bundled, thereby incentivizing adoption of the full suite while still capturing the value of each component on its own. (See Chapters 3 and 4 of Price to Scale.)
In practice, the decision should depend on your product’s value proposition and customer behavior:
- If your modules are tightly integrated and the combined solution delivers synergistic value, a bundled Good-Better-Best approach might be more effective.
- If customers perceive significant standalone value in individual modules or if usage of certain features varies widely across segments, a modular strategy—with strategic bundling discounts—would allow more flexibility.
Summary: Our book advises considering both strategies. The key is aligning your pricing structure with how your customers perceive value. Evaluate whether a unified bundle or a flexible modular approach (with the option for bundle discounts) best captures the underlying value of your product suite.