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Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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Based on our book Price to Scale, here’s how you can handle bundle pricing when customers have different usage levels across products:
Directly address customer usage variability
– Rather than treating all customers the same way, segment your customer base based on their level of product usage. High usage customers versus low usage customers may derive different levels of value from each component of your bundle. This segmentation allows you to tailor your pricing strategy so that each group receives a package that closely aligns with its needs and willingness to pay.Leverage graded or bundled options
– Our book describes a Good-Better-Best framework where packages are created with different sets of features and price points (see page 29). This graded approach works well when there’s less variance in usage intensity. However, when customer usage diverges significantly across products, consider combining this method with modular pricing elements:
• Offer a base bundle that covers essential features at a fixed cost.
• Allow customers to add on modules or upgrade certain elements if their usage is higher.
This approach ensures that customers aren’t overpaying for features they rarely use, while also capturing additional value from those who use more.Proactively offer alternatives and transparent pricing adjustments
– For customers whose usage levels differ markedly from the norm, consider proactively offering alternatives—such as upgrades or volume-based discounts tied to longer commitments (as discussed on page 553). This ensures that your pricing strategy remains flexible and customer-centric, accommodating variations in deal sizes and actual product consumption.
– Stay upfront about potential price reductions or offers that could benefit customers with lower usage rates while ensuring that additional usage or capacity is appropriately monetized.
In summary, our SaaS pricing book Price to Scale recommends a dual strategy. Use tiered or Good-Better-Best packages as a solid starting point, and then adjust using modular elements and targeted segmentation to account for variations in product usage. This balanced approach helps ensure that each customer segment finds a pricing model that accurately reflects the value they receive.