Price packaging is the architecture that transforms your value proposition into a purchasable offer. It’s not just “how much to charge”, it’s how you organize plans, what each one includes, what limits you apply, and what add-ons you offer. In a startup, good packaging does two things at once: it facilitates the customer’s decision and protects your margin. Bad packaging creates friction, forces you to negotiate each sale, and also prevents learning because each customer ends up with a different price.
A useful comparison starts from three packaging models:
- Model 1, tiered plans. This is the most common: for example basic, professional, and enterprise. Its advantage is psychological and commercial: it simplifies the purchase, allows scaling, and helps segment. Its risk is designing arbitrary tiers that don’t reflect real value. The technical rule is that each plan jump should be associated with a different use case or an objective customer need, not a “whim” of the table. Limits must be coherent, for example users, projects, integrations, or volume. If the limits are confusing, the customer feels they’re being “locked out” and stops. Additionally, too many plans generate paralysis.
- Model 2, usage-based pricing. Here the customer pays according to a value variable: transactions, documents processed, gigabytes, orders, calls, etc. Its advantage is that it aligns with value and reduces the entry barrier, because the customer can start small. Its risk is twofold: on one hand, the bill can become unpredictable and generate rejection; on the other, usage-based pricing can penalize success, making the customer look for alternatives when they grow. For it to work, you need a usage metric that the customer understands, that is controllable, and that is connected to value.
- Model 3, base plan with add-ons. A main plan is charged, and then add-ons are added for advanced functionalities, modules, or services. Its advantage is that it avoids inflating the main plan with things only a few need, and allows monetizing extra value without forcing everyone to upgrade. Its risk is complicating the sale if there are too many add-ons or if the customer doesn’t understand what they need.
How to test without losing focus. The typical mistake is changing prices every month and concluding that “everything depends.” A packaging test should be limited: you change one thing, define a hypothesis, and measure a result. Three reasonable tests are: adjusting the limits of the middle plan, introducing an add-on to capture specific value, or reorganizing what each plan includes without touching prices.
Healthy packaging doesn’t seek to be perfect from the start. It seeks to be clear, defensible, and measurable. The goal is for each change to teach you something without breaking operations, and for the customer to perceive they’re paying for value, not for complexity.
Having personalized support, such as that from the Economic Office of Galicia, can make a difference in the successful implementation of this tool. Request the free specialized advice from the Economic Office of Galicia and use the available resources to boost your business.
