[pavlov]

One trick you can use is to figure out a set of product parameters that you can tweak into new combinations to create lots of pricing plans. They may be effectively identical to previous ones as far as your cost and engineering are concerned, but different enough that customers don’t feel someone is getting a different price for the same thing.

E.g. your previous “Medium Starter” plan included 10 foobags and up to 1.5 zoffobytes of data for a price of $19. Your new “Basic Plus” plan includes 15 foobags and 1.2 zoffobytes for $25.

[andi999]

I didnt buy a robot vacuum because of this. There was a crazy amount of different ones from the same company with different pricings. Maybe it is better now. But usually I want a product which fulfills my supposed needs for a reasonable price. Too many different products (especially from the same vendor) give me the certainty no matter which one I choose one or the other criterium will fail.

[pavlov]

The advice is more applicable to SaaS products where users can easily switch between plans, and creating new combinations of the product parameters is free.

Assuming you don’t overdo it, having multiple plans for different types of users can actually help customers feel more confident that your company has the experience to understand their needs.

[dannyw]

That’s a problem with product differentiation; not too many SKUs. I think you are referring to iRobot? I couldn’t understand the differences either.

But does the variety of MacBooks turn me away from buying a MacBook? No. Yet there are way more models!