Pricing & Packaging what?
Have you ever wondered why Spotify only has one paid plan to chose from? And why does Uber has 10 different options to pick from when ordering a buzz infused ride home at 4AM in the morning from you local pub?
Have you ever bended your mind why all of the “Enterprise” pricing options in any given SaaS product shows “Contact us” instead of giving a dollar figure? Or why does NordVPN always shows a limited time 72% off offer that will expire in 9 hours and 40 minutes — no matter when you would visit their landing page?
All of these options & marketing tricks are not “happy accidents“- majority of them are carefully thought through decisions that were part of products pricing & packaging strategy.
Because I had a pleasure of working with pricing & packaging (P&P) for multiple SaaS products — I’ve done my fair share of research, analysis, tests, prototypes, designs, fails & wins.
That’s why I’ve decided to start a series of Medium articles that will cover various topics that are crucial to consider whether you’re just starting up a new product or you are already a flourishing and well established unicorn that’s taking the world by storm. As a Product Manager I’ll be sharing both my experience and opinion on how product driven & sales led organisations could do the P&P.
All of my thoughts & topics will be mostly focused around tech products — both B2B and B2C, but might be applicable to other types as well.
In the upcoming article series I’m going to cover these essential topics that will potentially help you to structure your product for a commercial success:
- Products Pricing & Packaging Strategy
- Structuring Plans, Tiers & Packages
- Add-ons & Menu A-La-Carte
- Pricing For Different Markets & Verticals
- Taxes, Fees & “Hidden Service” Costs In Your Pricing
- “Pay as you go” & “Pay in Advance” Models
- Subscription Model vs One Time Purchase
- Monthly, Quarterly & Yearly Pricing Shenanigans
- Paywalls! 🧱
- Building Your Product Features in a Scalable Way
- Your 30 Day Free Trial
- The Good Ol’ Freemium Model
- The Complexity of Mapping & Maintaining Your Features
- 9 Circles of Discounting “Hell”
So if you’re interested to hear more about pricing & packaging your product in a smart way — feel free to hop along with me on this long ride where I’ll be trying to post bi-weekly articles about the above mentioned topics. To make sure not to miss any of the updates — feel free to follow me on Medium or on LinkedIn!
