Tier Packaging Optimizer
Optimize your feature mix. Move features between Basic, Pro, and Enterprise to balance 'Value Provided' with 'Price Captured'.
Tier Value vs Projected Share
Optimization Check
Est. Blended ARPU: $26.16
Value Progression
Good. Pro offers significant extra value.
Distribution
We project 30% of users on Pro. Adjust feature mix to shift this.
Upgrade Incentive
Are there features in Pro that Basic users desperately need? That is your upgrade engine.
Execution Steps
Set prices for your 3 tiers.
Use the arrows to move features up or down tiers.
Watch the 'Value Score' bars change. Ensure higher tiers have significantly more value.
The 'Projected Share' bars simulate how users might split based on the Value/Price ratio.
Pro Strategy
- Don't give away your 'Killer Feature' in the Basic plan. It destroys your expansion revenue.
- Ensure the Basic plan is 'Good enough to try, but too limited to scale'.
- If Pro adoption is low, try moving a high-value feature down from Enterprise or up from Basic.
Core Concepts
Feature Fencing
Placing specific features in higher tiers to force upgrades. Effective fences are features that grow in importance as the customer grows (e.g. Seats, API limits).
Value Gap
The difference in perceived value between tiers. If the gap between Basic and Pro is too small, no one upgrades. If too big, it feels like a rip-off.
The Anchor
The Enterprise tier often serves as a price anchor, making the Pro tier look like the 'rational' choice.
What is Tier Packaging Optimizer?
This tool uses a simplified conjoint-like logic. It assumes customers choose the plan that offers the best Value-to-Price ratio. By moving features, you change the value proposition of each tier, shifting the simulated demand curve.
Best For
- • Designing new pricing packages.
- • Debugging low upgrade rates.
- • Planning a price increase.
Limitations
- • Subjective feature values.
- • Assumes rational buyers.
- • Does not model usage limits.
Alternative Methods
Price Segmentation
Similar concept but focused on the matrix layout.
Industry Applications
See how this methodology generates real revenue uplift in different sectors.
Video Editor
Free users not upgrading.
Moved '4K Export' from Free to Pro.
Project Management
Low Enterprise adoption.
Moved 'SSO' and 'Audit Logs' to Enterprise.