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When selling to both individuals (teachers) and enterprise clients (school districts), don't offer the same product at different prices. Create distinct versions with different feature sets to justify the price disparity, preventing the cheaper option from devaluing the enterprise offering.

Related Insights

SaaS companies scale revenue not by adjusting price points, but by creating distinct packages for different segments. The same core software can be sold for vastly different amounts to enterprise versus mid-market clients by packaging features, services, and support to match their perceived value and needs.

Small, incremental price jumps like $100 to $129 appeal to the same customer segment and fail to capture high-end buyers. A truly effective upsell tier should be 5 to 10 times the price of the previous one, designed to capture the small percentage of customers with vastly greater spending power.

Resist the pressure to serve disparate customer segments like SMBs and enterprise with one product. Their needs are fundamentally different. Focusing intensely on one segment allows for deeper innovation and superior product-market fit, avoiding a compromised, 'hodgepodge' solution that pleases no one.

Constantly discounting your main product trains customers to wait for sales and devalues your brand. Instead, splinter off a small component of your core offer and discount that piece heavily. This acquires customers and builds trust without cannibalizing the perceived value of your full-priced core offer.

Within the core 'market penetration' quadrant, changing pricing isn't just about raising prices. It's a form of product development. Creating new tiers, offering read-only options, or bundling features strategically can unlock growth without writing a single line of new code.

To sell more of a $300 package instead of a $200 one, introduce a $500 option. Most won't buy the decoy, but its presence shifts the customer's reference point, making the $300 package appear more reasonable and valuable by comparison.

A blanket price increase is a mistake. Instead, segment your customers. For those deriving high value, use the increase as a trigger for an upsell conversation to a better product. For price-sensitive customers, consider deferring the hike while you work to better demonstrate your value.

Instead of showing two final prices (e.g., $99 vs $169), frame the premium option as the base price plus a small add-on ("$99, or get everything for $70 more"). This 'differential price framing' focuses on the small extra cost, not the total, and can double premium sales.

Your product might feel expensive in a vacuum. To combat this, introduce a VIP or high-end option priced 3-5x higher than your main offering. This use of price anchoring makes the standard option appear much more reasonable and approachable by comparison, similar to how a $200 steak makes a $30 steak look like a bargain.

Protect your team's time by explicitly listing process-heavy items like procurement support and security questionnaires as "Enterprise Plan" features. When a mid-market customer demands this process, you can point to the pricing page to justify the higher-tier cost.