---
title: Pricing, Tier, and Packaging — RGM Training
url: https://realgrowthmatters.com/training/subscription-growth/pricing-tier-and-packaging/
updated: 2026-06-10
source_html: https://realgrowthmatters.com/training/subscription-growth/pricing-tier-and-packaging/
---

[Home](../../../index.html) › [Training](../../index.html) › [Subscription Growth](../index.html) › Pricing, Tier, and Packaging

RGM° · Training

# Pricing, Tier, and Packaging

Biggest under-used lever. Tiering, packaging mechanics, value-based pricing, change management, discounting, experimentation.

### What you will learn

1. [Why pricing is the biggest under-used lever](#why)
2. [Tiering strategy](#tiering)
3. [Packaging mechanics](#packaging)
4. [Value-based pricing](#value)
5. [Pricing change management](#changes)
6. [Discounting discipline](#discounting)
7. [Pricing experimentation](#experimentation)
8. [Advanced playbook](#advanced)
9. [Common mistakes](#mistakes)
10. [Checklist](#checklist)

## Why pricing matters

Pricing changes generally have larger impact on revenue than acquisition or retention improvements. Most companies under-invest in pricing strategy. The teams that take it seriously gain compounding advantage.

## Tiering strategy

- Good/better/best tiering.
- Tier features differentiate clearly.
- Most customers should land in middle tier.
- Top tier anchors value; not the volume.
- Free tier (freemium) considerations.

## Packaging

- Per-user pricing.
- Usage-based pricing.
- Tiered flat pricing.
- Hybrid models.
- Add-ons vs core features.
- Annual vs monthly discount.

## Value-based pricing

- Price to value delivered, not cost.
- Research willingness to pay (Van Westendorp, conjoint).
- Segment-specific pricing.
- Differentiated pricing per use case.
- Premium positioning where justified.

## Pricing change management

- Grandfathering existing customers vs not.
- Communication strategy.
- Annual review cadence.
- Impact modeling before change.
- A/B testing of new pricing on new customers.
- Migration playbook.

## Discounting discipline

- Discount LTV typically lower; track separately.
- Promotional vs evergreen discounts.
- Annual prepay discount (10–20% typical).
- MAP enforcement if multi-channel.
- Discount approval process for sales.

## Pricing experimentation

- New tier pricing on new customers.
- Discount level testing.
- Bundle vs unbundle testing.
- Pricing page A/B testing.
- Conjoint analysis annually.
- Quarterly pricing review.

## Advanced playbook

- Annual willingness-to-pay research.
- Segment-specific pricing.
- Tier consolidation when too many.
- Add-on monetization.
- Usage-based pricing where it fits.
- Pricing page conversion testing.
- Cohort LTV by pricing tier.
- Annual pricing strategy review with finance.
- Competitive pricing analysis.
- International pricing strategy.

## Common mistakes

- Pricing static for years.
- Cost-plus pricing instead of value-based.
- Too many tiers; confusion.
- Discounting trains expectations.
- Annual prepay not offered.
- Grandfathering forever; can't evolve.
- No willingness-to-pay research.
- Pricing page never tested.
- Segment-specific pricing missing.
- Add-ons not monetized.

## Operating checklist

- Pricing reviewed annually
- Tier structure documented
- Willingness-to-pay research annually
- Cohort LTV by tier
- Pricing page tested
- Annual prepay incentive
- Discount discipline documented
- Migration playbook for changes
- Add-on monetization
- International pricing strategy

## Sources and further reading

- Patrick Campbell, ProfitWell pricing
- Madhavan Ramanujam, "Monetizing Innovation"
- SaaS Pricing Strategy by Adii Pienaar
- Conjoint analysis methodology
- Van Westendorp price sensitivity
- Simon-Kucher pricing research
- OpenView SaaS pricing benchmarks
- Tomasz Tunguz pricing writing
- David Skok pricing frameworks
- Mike Madda pricing writing
- RGM DTC Growth subscription mechanics
- Stripe pricing best practices

---

Part of the [Subscription Growth](../index.html) series.