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Estd 4.22.2023
Below is a structured approach based on concepts outlined in our pricing strategy book, Price to Scale:
Directly differentiate the value proposition
• Clearly articulate that the standalone offering provides a premium, customizable value that the bundle does not.
• Emphasize the unique benefits or advanced features available only in the high-priced option.Design the bundle with strategic segmentation
• Target the bundle to customers whose needs align with a broader, multi-product solution rather than those willing to invest in premium flexibility.
• Position the bundle as an entry or mid-tier option that complements, rather than competes with, your standalone product.Implement safeguards to protect revenue
• Consider policies such as no-downgrade clauses where existing customers do not receive a lower list price than what they already pay.
• Alternatively, use differentiated list pricing between new bundle deals and higher-priced standalone offerings to keep their perceived values distinct.Clearly communicate pricing structure and feature allocations
• Avoid overwhelming customers with too many options—instead, maintain simplicity in how value is communicated.
• Use packaging and feature tiering to reinforce that the bundle is tailored to a different audience without devaluing the premium offering.
In summary, as discussed in Price to Scale, the key is to ensure the bundle is positioned to address a different set of customer needs while protecting the premium value of your standalone product. By clearly segmenting features and pricing through tactics like no-downgrade policies or differentiated list prices, you can encourage bundle uptake without sacrificing high-end revenue.