Article
How to price expansion and growth
Structure pricing tiers, usage-based fees, and add-ons that enable customers to grow with you whilst capturing more value as they scale.
Summary
This lesson explains how to set pricing for expansion offers, upgrades, and add-ons. You will learn how to anchor expansion pricing to value delivered, avoid common mistakes like price anchoring to the original deal, and structure pricing that makes saying yes easy.
Expansion pricing determines how much revenue you capture as customers grow. Flat pricing leaves money on the table. Usage-based pricing scales with value delivered. Tiered pricing creates clear upgrade paths. Add-ons let customers customise. The best expansion pricing aligns cost with value customers pay more as they get more. This chapter shows you how to structure pricing that enables growth, choose between usage-based and tiered models, price add-ons that don't cannibalise tiers, and communicate pricing changes without triggering churn.