You see it everywhere: Good-Better-Best (GBB) packaging and pricing is practically a standard these days. Here are some examples you probably encounter regularly:
• First class, premium economy, or economy flights
• Car trim levels
• Streaming services: full ads, limited ads, or no ads
This setup lets consumers pick a package that matches their budget and the value they need.
But GBB isn’t just for consumer products—it’s a crucial tool in B2B. When you’re negotiating with customers, offering tiered options can be a game-changer. It gives you the flexibility to remove value from your offering when a customer insists on a lower price. Essentially, it forces a price-value tradeoff that ensures your pricing aligns with the value you’re delivering.
This approach works great when your product or service naturally lends itself to tiered options. But what if it doesn’t? Some companies struggle to implement GBB for reasons like:
• Their products haven’t evolved enough to create distinct tiers.
• Production or service limitations make it tricky to add or remove features.
So, if your product doesn’t naturally support a GBB approach, what can you do?
𝗧𝗵𝗶𝗻𝗸 𝗕𝗲𝘆𝗼𝗻𝗱 𝘁𝗵𝗲 𝗣𝗿𝗼𝗱𝘂𝗰𝘁
You can create tiers by focusing on “non-product” features. For example:
• Service levels: How much access does the customer get to support, subject matter experts, or analysts?
• Payment terms: Upfront payment versus extended terms.
• Premium services: Value-added offerings like consulting or training.
• Price guarantees: Locking in rates for longer periods.
• Shipping speed: Standard versus expedited.
𝗕𝘂𝗻𝗱𝗹𝗲 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰𝗮𝗹𝗹𝘆
If tiering a single product isn’t feasible, consider bundling multiple products to create packages. This way, you’re building a suite of solutions tailored to specific use cases instead of trying to force-fit tiers onto a standalone product.
By thinking creatively about how to implement GBB, you can offer your customers the flexibility they want while protecting your margins and reinforcing the value of your offerings.
