If love your insights on this pricing principle. If you offer a very basic plan with a lot (a lot!) of possible add-ons, after the “Discovery” the Sales Representative can create the best suited combination of Plan+Add-Ons (+Usage limits) to suit the clients use-case and match exactly what they need today. The various add-ons (usage upsells) left can help the client expand their platform functionality at a later moment.
It seams like a reasonable approach, but it doesn’t fit the classic schemes (I’m only half-way through Ulrik’s book and haven’t yet come across it ) Without giving away any more information, I just wanted to see what this community of pricing professionals thinks of this approach…
Without knowing more about the add-ons, I have a few thoughts.
My biggest concern with this strategy is that you would end up with a large volume of bespoke contracts, making it hard to do apples-to-apples comparisons across your customer base.
Downstream, this could complicate CX, make customer analysis more challenging, and introduce complexity with future pricing and packaging updates.
It also increases the number of transactions for your customers, which burns calories for your sales/account management teams, and could come off as “nickel-and-diming.”
While it does seem extremely customer friendly, I’d be curious if it’s possible to package these add-ons into tiers that are focused on accomplishing a specific job-to-be-done?
Thank you so much @Rob_Litterst and @garrickvanburen . Apologies for the late responses, yet another superlong May holiday weekend that stretched into June, here in France.
Yes, indeed the difficulty with bundles are that they can be a sum of two smaller bundles (=> complexity) and then there is always that one feature the customer wants to “unbundle” to pay less
“Burning calories” is certainly an issue as you can only pitch an upsell need to a given customer once in a given time… you cannot come back and propose they buy something new all the time.
For us I feel it’s all about the story we’ll need to create with few bundles / tiers that provide a coherent upgrade path that the customer WANTS to complete, so we have an expectation to pay from the start..
I love how so many recent posts from @Ulrik speak so much to me… SKU Spaghetti, CAC, don’t know if our use case sparked some inspiration but it’s definitely helping us to structure our argumentation !!
Thanks for the mention @Magdalena_Martin1 - and do notice, that if you have comments to the Monday Price Point (the newsletter), you can just hit ‘reply’.
That’s what another reader did last week - which then prompted the recent ‘SKU Spaghetti’ post.
) Without giving away any more information, I just wanted to see what this community of pricing professionals thinks of this approach…
but it’s definitely helping us to structure our argumentation !!