Basics. / Unbundling

Unbundling Across Product and Usage Dimensions

Unbundling can be done either across product dimensions, time or both. That gives four possible pricing scenarios: Monolithic Pricing: Customers pay once and get all product features whether or not they need all the features and for all the time. Subscription Pricing: This is pay-as-you-go scheme. Customers pay periodically and get all the features. Add-Ons: … Continue reading

Classes of Service / Consumer Behavior / Credit Card / Gas Pricing / Transaction Costs / Unbundling

An Alternative To Unbundled Pricing – Service Reduction

Are there cases where a business can simply eliminate a service component instead of unbundling it and charging separately for it? There is a very nice Italian  restaurant called Trattoria La Siciliana in  Berkeley, CA. Their offering is premium – authentic sicilian cuisine, great wines and  great service. This is also a small place and … Continue reading

Bundling / Classes of Service / pricing / Unbundling / Usage Based Pricing

Unbundling The Product For Micro-Targeting

PowerFrameworks is a website that offers Microsoft PowerPoint frameworks for visually showing concepts. Their pricing strategy stands out as an example of pricing done right. Their pricing is a very good example of product unbundling and pricing the unbundled components separately. What they sell it as a subscription service with recurring revenue. Their pricing is … Continue reading

Newspaper / pricing / Reference Price / Segmenting / Service Plan / Transaction Costs / Unbundling / Usage Based Pricing

The Wall Street Journal Pay Per Article Coming

The Financial Times reports that the WSJ is considering unbundling its online publication to offer pay per article scheme and is working on a Micro-payment scheme. Currently WSJ offers subscription only pricing for its online version for $99/year and is available at a discount when bundled with its paper version. Previously I have written … Continue reading

Bundling / Reference Price / Unbundling

Going from unbundled to bundled

The reference price experiment my colleagues and I conducted recently, proved our hypothesis that people do not like unbundled pricing because their reference price for these was $0.00 but can be nudged towards unbundled pricing if their reference price can be improved. But what if the marketer who offered unbundled option wants to shift the … Continue reading