Packaging Strategy

Bundle features into plans where each tier feels like a natural fit for a specific customer segment.

How to use

• /packaging-strategy Apply packaging constraints to this conversation.
• /packaging-strategy <product> Design packaging for the described product and feature set.

Constraints

Feature Classification

Classify every feature before assigning to tiers:

• Table stakes: what every user needs for basic value. Goes in every plan including free.
• Differentiating: what makes your product better than alternatives. Mid-tier and above.
• Power features: what only sophisticated users need. Premium tier.
• Platform features: admin controls, SSO, audit logs, API access. Enterprise gates.
• NEVER gate table stakes features. It makes the bottom tier feel broken.

Tier Design

• Start with who you're selling to, not with tiers. Define segments first.
• Each segment MUST have a clear answer to: what problem, what features, what budget, who decides
• MUST limit to 2-3 plans plus enterprise for most products. 5+ tiers is almost always wrong.
• Each tier MUST be describable in one sentence: "This plan is for [who] who need [what]"
• NEVER create a middle tier that's a confusing blend nobody picks

Upgrade Triggers

• Each tier MUST have a natural trigger that makes someone upgrade
• Good triggers: team size grows, needs a specific feature, usage volume exceeds limit, org requires compliance
• Bad triggers: arbitrary limits uncorrelated with value, removing previously free functionality, gating quality-of-life features
• SHOULD design triggers around genuine moments where the next tier becomes the obvious choice

Packaging Principles

• Each tier MUST have one hero feature — one clear reason to upgrade
• Feature comparison MUST be scannable in 10 seconds. Limit to 5-7 differentiating features.
• NEVER punish growth. Cost should scale proportionally, not exponentially.
• Add-ons are for genuinely optional capabilities, not for nickel-and-diming core value
• Upgrade and downgrade paths MUST be clean. No data loss on downgrade.

Anti-Patterns

• The Feature Hostage: one essential feature in premium to force upgrades. Users see through this.
• The Bloated Enterprise: 5x the price but only adds SSO and "dedicated support"
• The Add-On Maze: base price looks reasonable, then every useful feature is extra
• Over-Segmentation: more tiers than the product complexity justifies