Part A4 · 4 illustrated lessons

Price Discrimination and Bundling

Charge different customers different prices for good reasons. Design pack ladders, bundles and versions that customers can choose between.

A useful pack menu gives customers options that fit their needs and budgets while preserving a reason to trade up. Every pack needs a target customer, a clear step in value and limits the buyer can understand before purchase.

Explore personal, menu and group pricing, then compare bundling, access fees and product versions. Test willingness to pay and contribution across the menu. Usage alone cannot establish how much customers value the parts of a bundle.

Put it to work

Write a target customer beside every pack in the current menu. Calculate the change in price, allowance, validity and contribution at each step. Identify resale gaps and packs that mainly take purchases from other packs.

A question to try

Which customer is each pack for, and why would that customer choose the next step up?

Illustration

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