mkt-pricinglisted

# Pricing — Pricing & Packaging Strategy **Price is the only lever among the 4Ps that fully determines margin.** A 1% price increase usually lifts profit ~10% (assuming price elasticity <1). It's a far bigger lever than copy or ads, so don't leave it for last — put it first in line to validate. ## Model Selection | Model | Fits | Risk | |---|---|---| | Per-seat/user | Collaboration tools | Gate spread is slow | | Usage | Infrastructure/API | Revenue unforecastable | | Hybrid | Most B2B SaaS | Billing design is complex | | Flat price | Simple products | Misses segment margin | ## Tier Design (3 tiers as the default, never exceed 4) - Place the best-selling tier in the middle (visible default = middle, premium acts as the anchor) - Differentiate tiers only **where value accumulates** (e.g. team features, API, SSO). Arbitrary feature gating causes churn and complaints - Do the top 20% of payers sit on the top tier? If not, redesign the tier boundaries ## WTP Research & Price Changes - Customer research asks not "how much would you pay" but **trade-off questions against alternatives** (current substitute cost, reaction to competitor comparisons) - Derive a candidate range with the Van Westendorp 4 questions (too expensive / cheap / too expensive to consider / too cheap to trust), then A/B within that range - **Price increase execution rule**: existing customers get at least 60 days advance notice plus a grandfathering option (1-year grace). Unnotified increases are the #1