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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 saas pricing book, Price to Scale, there isn’t a one‐size-fits-all answer—it depends on your customer segments and overall pricing strategy.
• If your target market (for example, SMBs or Mid-Market customers) shows relatively little variance in willingness to pay and you need to streamline sales velocity, using bundled packages (the Good–Better–Best model) can be highly effective. This approach groups sets of features into clear packages that resonate with different segments, helping you capture more revenue with simplified offerings.
• On the other hand, for scenarios where you want to offer a solid core product but also give customers the flexibility to enhance their solution with additional capabilities—especially if these add-ons can scale with customer size—a modular approach with core offerings plus add-ons tends to work better. As explained in our book (see the discussion on capability pricing on page 59), this helps avoid leaving on the table extra revenue and avoids complexity in base pricing. It even allows you to price these additional features either as fixed fees or as a percentage of the base, depending on what best aligns with your value capture goals.
In summary, use bundled package deals when you need simplicity and rapid deal velocity and opt for a modular, core-plus-add-ons approach when your customer needs or product complexity call for a more scalable, customized offering. The right choice will hinge on your market, pricing sophistication, and long-term value capture strategy as discussed in Price to Scale.