Many established businesses price from history. A number was set years ago, adjusted for inflation, and defended ever since. It rarely reflects what customers now value, how they buy, or where the business makes its margin.
Start with the value being delivered
Ask what changes for the customer when your product or service works well. Time saved, risk reduced, revenue enabled, compliance assured. Quantify it roughly with a few customers. That figure sets the ceiling for what your offer can credibly command.
Package for the decision the buyer is making
- Group features by the outcome they deliver, not by internal team
- Make the entry tier genuinely useful rather than deliberately frustrating
- Give buyers a clear reason to move up a tier as they grow
- Remove options that exist only because someone once asked for them
Test before you announce
Pricing changes are reversible in theory and expensive in practice. Validate with a defined segment first, watch conversion and deal size rather than sentiment alone, and agree in advance what result would cause you to adjust.
Done well, pricing and packaging is not a finance exercise. It is the clearest expression of who you serve, what you are best at, and where you intend to grow.