Pricing and Packaging Plan Template

Objectives, segments and willingness to pay, value metric, tiers, fences, price points, discounts, price research, financial impact, migration, EU/UK/US legal checks

产品与项目完整Common practice (value-based pricing; Ramanujam and Tacke 2016); EU, UK, US consumer law examplespricing packaging更新于 2026年10月29日

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使用方法: Use it when you introduce or change prices, tiers or the unit you charge for. Fill the objectives, value metric and willingness-to-pay evidence first, then tiers and price points, and plan the migration of existing customers with counsel. The main pitfall is debating price points before the value metric and packaging are right.

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Pricing and Packaging Plan: [Product name]

A pricing and packaging plan for a software or subscription product: pricing objectives, segments and willingness to pay, the value metric, tiers and the features in each, fences between tiers, price points, discount policy, price research and tests, the financial impact, the migration plan for existing customers, legal checks and the rollout. There is no formal standard; the plan follows common pricing practice (value-based pricing, good-better-best packaging and designing the product around willingness to pay, as discussed by Ramanujam and Tacke in Monetizing Innovation, 2016) in original words. The economics behind price discrimination, versioning and bundling are worked in mba/mba-pricing-card. Legal points are dated examples for the EU, UK and US as of October 2026; this is a documentation format, not legal or financial advice. Replace every [bracketed] value and every row marked Example.

Document control

Field	Value
Document ID	[PRC-PRODUCT-NN]
Product	[Product name] Example: Tallow Notes
Version	[0.1]
Status	[Draft / In review / Approved / Live / Superseded]
Owner	[@pricing-owner or @head-of-product]
Contributors	[@finance, @sales or growth, @support, @data]
Approvers / reviewers	[@ceo, @cfo, @legal-counsel]
Markets and currencies	[Countries, currencies, tax display] Example: Global, prices in USD, EUR and GBP, consumer prices shown including VAT where required
Planned effective date	YYYY-MM-DD
Last updated	YYYY-MM-DD
Classification	[Confidential until announced]

Approvals

Role	Name	Decision	Date
Product	[@name]	[Approved / Changes requested]	YYYY-MM-DD
Finance	[@name]	[Approved / Changes requested]	YYYY-MM-DD
Legal or compliance	[@name]	[Approved / Changes requested]	YYYY-MM-DD
Support or customer success	[@name]	[Approved / Changes requested]	YYYY-MM-DD

Revision history

Version	Date	Author	Change
0.1	YYYY-MM-DD	[@owner]	First proposal
[0.2]	YYYY-MM-DD	[@owner]	[Research results added, price points revised]
[1.0]	YYYY-MM-DD	[@owner]	[Approved for rollout]

Summary and decision requested
Pricing objectives and constraints
Segments and willingness to pay
Value metric
Packaging: tiers and feature allocation
Fences
Price points
Discount and promotion policy
Competitive reference
Price research and tests
Financial impact
Migration plan for existing customers
Legal and consumer protection checks
Rollout, monitoring and guardrails
Glossary
References

1. Summary and decision requested

Item	Statement
Change	[What changes in metric, tiers and prices]
Reason	[Link to strategy and evidence]
Expected impact	[Revenue, conversion, retention, with range]
Main risk	[Risk and mitigation]
Decision requested	[Approve / choose between options]
Example: Change	Bill by active editor (readers free), keep three tiers (Free, Plus, Team), raise Plus from 6 to 8 USD per editor per month on annual billing, add admin controls to Team at 15 USD
Example: Reason	Strategy pillar P1 (sharing) needs free readers; pillar P3 (trust) is packaged in Team; Plus price is below the research range of 7 to 9 USD
Example: Expected impact	Plus revenue from existing customers up 18,240 USD per month after migration if 6% of affected seats churn (range 12,480 to 24,000 USD for 12% to 0% churn)
Example: Main risk	Backlash from long-standing Plus customers; mitigated by keeping the old price until renewal and at least 60 days' notice

2. Pricing objectives and constraints

Rank	Objective	Measure
1	[Objective]	[Metric]
1 (Example)	Grow team adoption (more collaborating workspaces)	North star: weekly collaborating workspaces
2 (Example)	Increase revenue per paying workspace	Average revenue per paying workspace
3 (Example)	Keep pricing simple enough to explain in one sentence per tier	Support tickets about billing per 1,000 paying workspaces

Constraints:

[Constraint] Example: no sales team (non-goal NG-01), so every tier must be self-serve with a public price.
[Constraint] Example: billing system supports per-seat and flat prices, monthly and annual terms only.
[Constraint] Example: free tier must stay useful enough to invite a team, because growth comes from invitations.

3. Segments and willingness to pay

Segment	Value received	Willingness to pay (range)	Evidence	Tier fit
[Segment]	[Value]	[Range, unit]	[Research ID]	[Tier]
Example: Individuals and pairs	Personal knowledge, light sharing	0 to 5 USD per month	RES-034 survey, 1,180 responses	Free
Example: Small teams of 3 to 10	Shared notes, search, version history	7 to 9 USD per editor per month	Price sensitivity survey PS-02 (section 10)	Plus
Example: Teams of 10 to 30 with an admin	Admin roles, audit log, data residency	13 to 18 USD per editor per month	Conjoint study CJ-01 (section 10)	Team

Questions to answer:

Which segment is the target customer in the product strategy, and is its tier priced for adoption or for margin?
Who decides and who pays in each segment (user, team lead, finance)?
Which features did customers value most, and which did they not value at all?

4. Value metric

Candidate metric	Grows with value?	Predictable for customer?	Hard to game?	Supports strategy?	Verdict
[Metric]	[Yes / Partly / No]	[Yes / No]	[Yes / No]	[Yes / No]	[Chosen / Rejected]
Example: Per member (all seats)	Partly	Yes	Yes	No: charging readers discourages invitations	Rejected
Example: Per active editor (members who edited in the billing month)	Yes	Mostly (bill shows who edited)	Yes	Yes: readers are free, so teams invite freely	Chosen
Example: Per GB of storage	No	No	Partly	No	Rejected
Example: Flat price per workspace	No	Yes	Yes	Partly	Rejected for paid tiers

Chosen value metric: [Metric and exact definition]

Example: Active editor: a member who created or edited at least one note in the workspace during the billing month. Readers and commenters are free. Annual plans are billed on the number of editor seats the customer reserves, with a true-up each quarter.

5. Packaging: tiers and feature allocation

Capability	Free	Plus	Team
[Capability]	[Included / Limit / Not included]	[ ]	[ ]
Example: Editors	Up to 3	Unlimited	Unlimited
Example: Readers and commenters	Unlimited	Unlimited	Unlimited
Example: Starter spaces and templates	Yes	Yes	Yes
Example: Version history	7 days	90 days	Unlimited
Example: Storage	2 GB per workspace	20 GB per editor	100 GB per editor
Example: Question-style search (when released)	20 questions per month	Unlimited	Unlimited
Example: Admin roles and permission groups	No	Basic (owner, member)	Full
Example: Audit log with export	No	No	Yes
Example: EU data residency	No	No	Yes
Example: Support	Help centre	Email, 2 business days	Email, 1 business day

Tier design notes:

Free: [who and why] Example: lets a team of up to three editors try collaboration with no payment.
Plus: [who and why] Example: the main tier for small teams; priced inside the research range.
Team: [who and why] Example: adds trust and administration features from strategy pillar P3.

Add-ons (optional): [List features sold separately and why they are not in a tier.]

6. Fences

Fence ID	Fence	Type	Segment it separates	Risk of annoying customers
F-01	[Fence]	[Usage / Feature / Support / Term]	[Segments]	[L / M / H]
F-01 (Example)	Free limited to 3 editors	Usage	Individuals and pairs vs teams	M: a fourth editor must upgrade; mitigated by unlimited readers
F-02 (Example)	Audit log and EU residency only in Team	Feature	Small teams vs teams with an admin and compliance needs	L
F-03 (Example)	Version history 7, 90 days, unlimited	Usage	All three	L
F-04 (Example)	Annual term discount	Term	Committed vs trial customers	L

7. Price points

Tier	Monthly billing (per editor per month)	Annual billing (per editor per month)	Annual price per editor	Annual discount
[Tier]	[Price]	[Price]	[Price x 12]	[1 - annual / monthly]
Example: Free	0	0	0	not applicable
Example: Plus	10 USD	8 USD	96 USD	20%
Example: Team	18 USD	15 USD	180 USD	16.7%

Currency and tax: [How EUR and GBP prices are set (round local price points, not exchange-rate conversion), whether consumer prices are shown including tax, and how often local prices are reviewed.]

Unit economics check: [Gross margin per editor at each price, link to finance/unit-economics-analysis.]

8. Discount and promotion policy

Discount type	Maximum	Who approves	Duration	Conditions
[Type]	[%]	[Role]	[Period]	[Conditions]
Example: Annual billing	20% Plus, 16.7% Team	Built into price list	Term of contract	Paid upfront
Example: Nonprofit and education	50%	Support lead	12 months, renewable	Verified eligibility
Example: Launch promotion	25% for first 3 months	Head of product	Campaign window only	New customers; announced price reduction rules checked (section 13)

Rules: [Example: no unpublished discounts, no discount stacking, every promotion has an end date and a reference price that meets local price-reduction rules.]

9. Competitive reference

Alternative	Pricing model	Entry paid price	Checked on	Notes
[Competitor or alternative]	[Model]	[Price]	YYYY-MM-DD	[Notes]
Example: Suite notes tool (bundled)	Included in suite licence	0 marginal	2026-10-12	Our free tier competes here
Example: Specialist team wiki A	Per member	10 USD per member per month	2026-10-12	Charges readers
Example: Status quo: chat plus shared drive	Existing licences	0 marginal	2026-10-12	The main alternative for small teams

10. Price research and tests

Study ID	Method	Sample	Question	Result	Used for
[ID]	[Method]	[N, segment]	[Question]	[Result]	[Decision]
PS-02 (Example)	Price sensitivity meter survey (Van Westendorp method)	640 small-team leads	Acceptable price range for Plus	Acceptable range 7 to 9 USD per editor per month	Plus price point
CJ-01 (Example)	Choice-based conjoint (see mba/mba-conjoint-analysis-card)	410 admins of teams of 10 to 30	Value of audit log, residency, support level	Audit log and residency carried most of the Team premium	Team packaging
FD-03 (Example)	Fake-door test of a Team trial button	New workspaces with at least 10 members, 2 weeks	Interest in Team features	9% clicked "Start Team trial"	Team launch priority

Planned tests after launch:

Test ID	Hypothesis	Metric	Threshold	Plan
[ID]	[Hypothesis]	[Metric]	[Threshold]	[Link to product/ab-test-plan]
Example: PT-01	Showing annual billing as the default raises the annual share of new Plus purchases	Annual share of new Plus subscriptions	From 45% to at least 55%	product/ab-test-plan EXP-021

11. Financial impact

Existing customers (Example): 12,000 Plus editor seats at 6 USD per month today.

Scenario	Seats lost to the change	Seats after	Price	Monthly revenue after	Change vs today (72,000 USD)
No churn	0%	12,000	8 USD	96,000 USD	+24,000 USD
Base case	6%	11,280	8 USD	90,240 USD	+18,240 USD (+25.3%)
High churn	12%	10,560	8 USD	84,480 USD	+12,480 USD
Break-even	25%	9,000	8 USD	72,000 USD	0

Break-even churn = 1 - (old price / new price) = 1 - 6 / 8 = 25%. The base case assumption of 6% must be justified by evidence: [Example: churn after the previous price change in 2024 was 4% of affected seats].

New customers: [Expected effect on conversion from Free to paid and on tier mix, with a range.]

12. Migration plan for existing customers

Customer group	Today	After change	When	Notice	Offer
[Group]	[Plan, price]	[Plan, price]	[Date or event]	[Days]	[Grandfathering, credit, lock-in]
Example: Plus, annual	6 USD per editor per month	8 USD	At next renewal on or after 2027-03-01	At least 60 days before renewal	Option to renew early at the old price before 2027-03-01
Example: Plus, monthly	6 USD	8 USD	First bill after 2027-03-01	At least 60 days	Easy cancellation link in the notice
Example: Free with more than 3 editors	Free (old limit 5 editors)	Free with 3 editors or Plus	2027-03-01	60 days	3 months of Plus at 50%
Example: Nonprofit discount holders	3 USD	4 USD	Next renewal	60 days	Discount percentage kept

Communication plan:

Notice email and in-app message with the reason, the new price, the date, and how to cancel or change plan.
Help-centre article and pricing-page FAQ updated on the day of notice.
Support team briefed with answers to the ten most likely questions.
Billing system tested with every group above before the notice goes out.
Customers with contracts that fix prices identified and excluded until their terms allow a change.

13. Legal and consumer protection checks

Jurisdiction	Rule (example, check current text)	Question for counsel	Status as of October 2026
European Union	Price Indication Directive 98/6/EC, Article 6a (inserted by Directive (EU) 2019/2161): an announced price reduction must show the prior price, the lowest price applied in a period of at least 30 days before the reduction	Do our launch promotions show a compliant prior price in each EU market?	Applies from 2022-05-28 as transposed nationally
European Union	Consumer Rights Directive 2011/83/EU, Article 6(1): pre-contract information including the total price with taxes; point (ea) on prices personalised by automated decision-making (added by Directive (EU) 2019/2161)	Do consumer checkouts show total prices, and do we personalise any price?	In force as transposed nationally
European Union	Directive (EU) 2023/2673, adding Article 11a to Directive 2011/83/EU: an online withdrawal function for contracts concluded through a website or app	Does our cancellation and withdrawal flow meet the national transposition?	Applies from 2026-06-19 as transposed nationally
United Kingdom	Digital Markets, Competition and Consumers Act 2024, Part 4, Chapter 1 (unfair commercial practices, including how prices and mandatory charges are shown); CMA guidance CMA207 and price transparency guidance CMA209	Do headline prices include all mandatory charges?	Chapter 1 in force since April 2025 (CMA207 first published 2025-04-04 for its start); check legislation.gov.uk and CMA guidance
United Kingdom	Same Act, Part 4, Chapter 2 (subscription contracts)	Will renewal reminders and exit routes meet the regime when it starts?	Not yet in force; the government response of April 2026 anticipates commencement in spring 2027, subject to secondary legislation
United States (federal)	Restore Online Shoppers' Confidence Act, 15 U.S.C. 8403; FTC Act section 5 (unfair or deceptive practices)	Are recurring charges disclosed clearly, consented to and easy to stop?	In force
United States (federal)	FTC amended Negative Option Rule ("click-to-cancel"), 2024	Do we rely on any part of it?	Vacated by the US Court of Appeals for the Eighth Circuit on 2025-07-08 before enforcement; check ftc.gov for new rulemaking
United States (states)	Automatic renewal laws, for example California Business and Professions Code sections 17600 and following (amended by AB 2863 from 2025-07-01)	Do price-change notices and online cancellation meet each state's law?	In force; other states have their own laws
All markets	Competition law (for example Article 101 TFEU, UK Competition Act 1998 Chapter I, Sherman Act section 1)	Has anyone discussed prices or price changes with a competitor?	Never share or agree prices with competitors

Business-to-business sales may follow different rules; record which customers are consumers.

14. Rollout, monitoring and guardrails

Step	Date	Owner
[Step]	YYYY-MM-DD	[@owner]
Example: New prices for new customers	2027-01-04	Growth PM
Example: Notice to existing customers	2026-12-30 (at least 60 days before 2027-03-01)	Support lead
Example: Existing customers migrate	From 2027-03-01 (annual: at renewal)	Billing lead
Example: Post-change review	2027-05-31	Head of product

Guardrail	Limit	Action if breached
[Metric]	[Limit]	[Action]
Example: Plus seat churn among notified customers	Above 10% in 60 days	Review with leadership; consider extended grandfathering
Example: Free-to-paid conversion of new workspaces	Down more than 15% relative to baseline	Review Plus price for new customers
Example: Billing support tickets per 1,000 paying workspaces	Above 20 per week	Add FAQ, brief support again
Example: Weekly collaborating workspaces (north star)	Any sustained drop after change	Check whether the editor limit is blocking invitations

15. Glossary

Term	Meaning
Value metric	The unit the price is charged for
Packaging	How features and limits are grouped into tiers and add-ons
Fence	A rule that keeps customers in the tier matching their value
Good-better-best	A three-tier structure for segments with rising needs and willingness to pay
Willingness to pay	The highest price a customer would pay for an offer, usually estimated as a range
Grandfathering	Letting existing customers keep an old price or plan for a period
Break-even churn	The share of affected customers that can be lost before a price increase reduces revenue
Active editor (Example)	A member who created or edited a note during the billing month

16. References

Ramanujam, M. and Tacke, G. (2016). Monetizing Innovation: How Smart Companies Design the Product Around the Price. Wiley. ISBN 978-1-119-24086-0.
Van Westendorp, P. (1976). The price sensitivity meter, introduced at an ESOMAR congress; described in many market research texts.
Directive (EU) 2019/2161 (Omnibus Directive): https://eur-lex.europa.eu/eli/dir/2019/2161/oj/eng
Directive 2011/83/EU (Consumer Rights Directive): https://eur-lex.europa.eu/eli/dir/2011/83/oj/eng
CMA, Unfair commercial practices guidance (CMA207): https://www.gov.uk/government/publications/unfair-commercial-practices-cma207
UK government, consultation and response (outcome published 2026-04-02) on the subscription contracts regime: https://www.gov.uk/government/consultations/consultation-on-the-implementation-of-the-new-subscription-contracts-regime
FTC, Negative Option Rule page: https://www.ftc.gov/legal-library/browse/federal-register-notices/negative-option-rule
Related templates: mba/mba-pricing-card, mba/mba-conjoint-analysis-card, mba/mba-demand-elasticity-card, finance/unit-economics-analysis, product/ab-test-plan, product/competitive-analysis, product/product-vision-strategy, product/north-star-metric, marketing/go-to-market-plan, personal/subscription-audit.

Standard and licence note

Based on common pricing practice and on public EU, UK and US legal texts summarised in original words as of October 2026. This is a documentation format, not legal or financial advice: check the current official text and a qualified professional before changing prices. The book is cited by name only and no text, figures or tables are copied. Official text: Wiley, purchase or licensed access: https://www.wiley.com/en-us/Monetizing+Innovation%3A+How+Smart+Companies+Design+the+Product+Around+the+Price-p-9781119240860. All wording, the structure and the Tallow Notes example are original. Template licence: MIT.