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Estd 4.22.2023
Based on our book Price to Scale, a two-dimensional pricing scheme—often implemented as a base subscription fee combined with a variable fee (sometimes described as a two-part tariff)—has indeed been implemented by many companies with a generally positive reception from customers.
Here are some key points from our pricing strategy book:
• Customers are accustomed to models where a fixed fee is combined with a variable usage-based charge. This familiarity means that, when the pricing structure is clearly communicated, most customers do not find it confusing.
• Our book highlights that many SaaS companies have adopted such modular or two-part tariff models. In practice, these models have become increasingly common because they balance predictable revenue from the base fee with the flexibility and scalability of usage-based pricing.
• While the approach is accepted by customers, careful attention must be paid to pricing design. For example, if the variable component isn’t structured well (leading to what our book refers to as “sawtooth edges” or inconsistencies), it may create confusion or misaligned expectations from the customer's perspective.
In summary, when implemented thoughtfully and clearly—as recommended in Price to Scale—a two-dimensional pricing scheme is generally well accepted by customers and can effectively align price with the value provided.