.png)
Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Below is a concise explanation based on our saas pricing book, Price to Scale:
• Direct Answer:
You can charge for customization or configuration by either bundling these features into predefined packages (such as Good-Better-Best tiers) or by adopting a modular pricing approach that assigns a separate value to each additional customization or configuration.
• In Practice – Good, Better, Best Packaging:
As discussed on page 29 of Price to Scale, one common approach is to create tiers that group various features together. In these packages, different levels of customization or configuration needs are met by offering more or fewer features at each price point. This methodology works well when your target segments (often SMB and Mid-Market) have relatively homogeneous requirements in terms of customization.
• In Practice – Modular Pricing:
Alternatively, you can package your product’s features in a modular way—essentially treating each customization or additional configuration as an add-on that carries a specific value. This approach lets you price the product more precisely based on what the customer actually requires. By isolating and valuing each component, you ensure that customers who need extra functionality or bespoke configuration are charged appropriately.
• Summary:
In essence, deciding between tiered packaging and modular pricing comes down to how varied your customer needs are. For standard segments with predictable configurations, Good-Better-Best tiers provide clarity and simplicity. For more complex or high-touch cases, a modular approach ensures that each customization is accurately priced according to its value.
By aligning your pricing method with the level of customization required, you create a pricing strategy that is both fair to the customer and sustainable for your business.