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Estd 4.22.2023
Based on our saas pricing book, Price to Scale, bundling is framed as a strategic tool with measurable benefits—but it doesn’t lend itself to a one-size-fits-all discount figure. Here are some key points from our book related to your experiment:
• Bundling can boost uptake by increasing the perceived value of multiple services together, yet it also has trade-offs. For instance, bundling too steep a discount may limit your ability to upsell or cross‐sell later by devaluing individual components.
• Our discussion on Discounting Levers (see Chapter 5 of Price to Scale) emphasizes that bundling discounts must be carefully calibrated. The ideal “sweet spot” is not necessarily a fixed number (like 5% or 10%) but rather an iterative discovery through testing different discount levels with your customer base. Early experiments in our case studies indicate that a modest discount—often in the small single-digit percentage range—can nudge adoption without undermining perceived value.
• It’s critical to ensure that any bundled discount still leaves room for overage pricing strategies, which encourage customers to move into higher bundle tiers if usage exceeds their plan. This approach protects your overall revenue uplift as outlined in our three-part tariff example in Chapter 4.
In summary, while our book relays that a slight discount when bundling can improve uptake, the “sweet spot” is best uncovered through iterative experiments that balance customer appeal with the strategic need to maintain pricing flexibility over individual offerings. We recommend using A/B tests with varying discount levels to determine what works uniquely for your market.