Review Your Pricing Architecture
Are your tiers, bundles, or discounts leaving money on the table?
What this is for
Uncovering hidden value and leakage in how you package and price—so you capture more revenue and profit from existing demand without needing more traffic.
What you get
- Diagnosis of mispriced offers, confusing tiers, and inefficient discounts
- Clear changes to extract more value (reframe, re-bundle, reprioritize pricing gaps)
- A test-ready roadmap to validate and roll out improvements
- Guardrails to avoid conversion collapse when adjusting
Core logic
Revenue isn’t just “how many” but “how you sell it.” Poorly structured tiers confuse buyers, unoptimized bundles leave easy dollars untapped, and blanket discounts erode margin. A strategic review aligns value perception with price, fills gaps, and shifts more customers into higher-value configurations without increasing acquisition cost.
Step-by-step
- Map current architecture
List all tiers, bundles, add-ons, discounts, and upgrade paths. Include who buys what and at what conversion rate.
- Assess value alignment
- Is the incremental value clear to the customer?
- Are price jumps justified by perceived benefit?
- Is there a “no-man’s land” (gap where customers drop off) or too much overlap?
For each tier/bundle:
- Identify leakage points
- Heavy discount reliance (are you training customers to wait for a deal?)
- Underpriced high-value features or bundles
- Tier confusion causing choice paralysis
- Missing upsell paths (e.g., no logical next step after entry)
- Reframe & restructure
- Clean up tiers: collapse low-differentiation tiers, clarify value steps.
- Build or adjust bundles to increase AOV with minimal friction.
- Introduce anchoring or decoy pricing to shift choices toward higher-margin options.
- Replace blunt discounts with value-added upgrades or time-limited premium framing.
- Test changes
- Tier simplification
- Price repositioning
- Bundle restructuring
- Discount removal or replacement with alternative incentives
Run controlled experiments on:
- Rollout & monitor
Deploy winners, track migration between tiers, revenue per customer, and conversion impact. Watch for unintended fallout (e.g., higher price causing too much friction) and iterate.
Decision thresholds / guardrails
- Price gap too large or unclear between tiers → Refine step logic or add intermediary value.
- Discounts account for >X% of sales and erode margin → Replace with scarcity/value framing; test removing discount on a slice.
- Low uptake on higher tiers despite clear value → Check messaging, perceived ROI, or anchoring.
- Bundled AOV lift < friction cost or conversion drag → Simplify or reprice the bundle.
Examples
- SaaS: Entry tier and mid-tier overlap, causing upgrade confusion—collapse into a clearer two-step progression with a “most popular” anchor, increasing upgrade lift.
- E-commerce: Frequent sitewide discounts trained buyers to wait; replaced with personalized “bundle and save” offers tied to past behavior, preserving margin while increasing AOV.
- Service: Flat pricing forced discounting on bigger clients; introduced tiered retainers with clear added outcomes, reducing discount dependence and increasing revenue per client.
Thinking checks
- Do your prices reflect actual perceived value jumps, or are customers skipping tiers?
- Are discounts masking underlying pricing misalignment?
- Is there a clear next-best offer for each customer segment (upsell path)?
- Are you testing changes in a way that isolates impact on conversion vs. value capture?
What to track (minimum)
- Revenue per tier/bundle
- Upgrade/downgrade flows
- Discount dependency (% of revenue at reduced price)
- AOV changes from bundling
- Conversion impact from pricing changes