Is a one-size-fits-all pricing approach okay for all customer segments, or do we need different models for different types of customers (e.g., SMB vs enterprise)?

Based on the guidance in our pricing strategy book, Price to Scale, a one-size-fits-all pricing approach is not ideal across all customer segments. Different customer types, such as SMBs and enterprise customers, often have distinct needs and value perceptions, and therefore require differentiated pricing models.

Key points from our book include:

• For SMB and mid-market segments, a Good–Better–Best (or graded package) strategy is often effective. This model groups features into packages tailored to varying levels of customer needs and willingness to pay, streamlining the pricing process for markets where deal velocity is crucial.

• On the other hand, the enterprise segment typically demands more flexibility. For such customers, our book highlights the necessity for discrete or custom pricing models that account for value-driven selling and complex ROI analyses. Enterprise deals often involve negotiations based on specific customer requirements and overall value delivered, making a one-size approach less suitable.

In summary, while a graded packaging model might work well for broader markets with less pricing variance, enterprise customers typically require a bespoke pricing strategy. This tailored approach ensures that pricing aligns with the distinct value propositions and negotiation dynamics inherent to larger, more complex deals.