My biggest challenge with pricing and breaking the platform down into plans has been figuring out features that work on their own. Our platform features are extremely intertwined, it’s often hard to get one without another.
I guess the “jobs to be done” is at the core of that challenge. We haven’t defined these jobs well enough and it reflects in our platform structure which then impacts pricing. Your point #3 really spoke to me on that; makes a lot of sense.
Glad to hear it resonated, Alex! Packaging is definitely a tough task. I always try to look at things from a customer lens whether you use a jobs to be done framework or simply ask customers what about your product is ‘must have’, ‘nice to have’ or things they ‘don’t need’.
Question for you on the last point ("Ditch the prosumer tier") since it's something that is currently under discussion here at Beefree. Do you see Canva's Pro plan as a prosumer plan, and therefore something that in general you advise against, and an exception to the rule? If so, why do you think that it works in Canva's pricing? Thanks!!
I do think Canva is an exception here. They started with only a personal / consumer tier and have been steadily shifting folks to teams / business-oriented plans. You can see that in their pricing model where they heavily favor folks to start on Canva for Teams (it's the same price as Canva Pro if you only have 1 user, but you get more features). My sense is that the majority of Canva's legacy revenue is probably still attached to Pro, which is why they're steadily shifting away from it vs. doing anything drastic.
Is there ever a case for all-in-one pricing (e.g., Basecamp)? Even if it’s not a long-term strategy but a way to use price to distinguish yourself from your competitors and (hopefully) accelerate growth.
Top tier post, thank you for sharing.
My biggest challenge with pricing and breaking the platform down into plans has been figuring out features that work on their own. Our platform features are extremely intertwined, it’s often hard to get one without another.
I guess the “jobs to be done” is at the core of that challenge. We haven’t defined these jobs well enough and it reflects in our platform structure which then impacts pricing. Your point #3 really spoke to me on that; makes a lot of sense.
Glad to hear it resonated, Alex! Packaging is definitely a tough task. I always try to look at things from a customer lens whether you use a jobs to be done framework or simply ask customers what about your product is ‘must have’, ‘nice to have’ or things they ‘don’t need’.
Hey Kyle, great content once again!
Question for you on the last point ("Ditch the prosumer tier") since it's something that is currently under discussion here at Beefree. Do you see Canva's Pro plan as a prosumer plan, and therefore something that in general you advise against, and an exception to the rule? If so, why do you think that it works in Canva's pricing? Thanks!!
I do think Canva is an exception here. They started with only a personal / consumer tier and have been steadily shifting folks to teams / business-oriented plans. You can see that in their pricing model where they heavily favor folks to start on Canva for Teams (it's the same price as Canva Pro if you only have 1 user, but you get more features). My sense is that the majority of Canva's legacy revenue is probably still attached to Pro, which is why they're steadily shifting away from it vs. doing anything drastic.
Thanks Kyle!
very comprehensive guide for a topic which somehow gets very little coverage, thank you!
Appreciate it, Dominik!
Is there ever a case for all-in-one pricing (e.g., Basecamp)? Even if it’s not a long-term strategy but a way to use price to distinguish yourself from your competitors and (hopefully) accelerate growth.