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Estd 4.22.2023
Companies with a broad portfolio—like Atlassian or Adobe—typically balance structured product tiers with modular, bundled pricing to both drive adoption of individual products and encourage customers to use more of their tools as a suite.
Below are some key takeaways from our pricing strategy book, Price to Scale:
• Structured Tiers & Packages
Our book explains how many companies use the “good – better – best” framework. Products are grouped into tiered packages with varying features and pricing, making it easier to target different customer segments. This not only simplifies the buying decision but also allows companies to capture the maximum willingness to pay from each segment.
• Modular & Bundled Pricing
In a multi-product setting, companies may adopt a modular approach where the value of each product is clearly attributed. For customers using multiple products, bundling these into a suite can come with incentives—such as volume discounts or package upgrades—making the suite more attractive than purchasing products individually. As discussed in Price to Scale, this method helps optimize revenue by balancing acquisition of new customers and deepening existing customer relationships.
• Volume & Usage-Based Discounts
The book also highlights that discounts often scale with usage or deal size. For example, while commercial deals might see discounts up to 20%, enterprise deals could have discounts of up to 80%, reflecting the expected volume discount when more of the service is used. This principle applies similarly to multi-product suites where larger customers often benefit from lower per-unit pricing.
In summary, companies like Atlassian and Adobe structure their pricing across a diverse product portfolio by combining tiered product offerings with bundled discounts. This approach not only aligns value with varying customer needs but also effectively incentivizes customers to adopt an entire suite of solutions.