Part A4 · Price Discrimination and Bundling

Designing a Pack Ladder

A pack ladder is the menu from smallest to largest pack. Good ladders let customers sort themselves without leaking revenue.

Designing a Pack Ladder · Illustrated by Hendra Saputra with AI assistanceSelect the illustration to explore it at a larger size.

The idea

Price per GB should fall as packs grow so heavy users trade up, but not so steeply that light users buy one big pack and share or resell it. Each step up should add revenue. Validity is a sorting tool as well as a size: daily packs suit people paid daily or short of cash, monthly packs suit salaried customers.

Use it thoughtfully

  • Write the target customer for each pack.
  • Check that light users gain nothing by buying the biggest pack.
  • Match validity to daily, weekly and monthly pay patterns.

An example

ILLUSTRATIVE EXAMPLE: A team removes a pack nobody can describe a customer for, and adds a weekly pack for workers paid each week.

A question to try

Can you name the target customer for every pack on your current menu?

A useful framework is a starting point, not a guarantee. Effects vary with the audience, product and situation. Use truthful evidence, respect customer choice, and test the result.

Connect the ideas

Illustration

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