Structure pricing tiers, usage-based fees, and add-ons that enable customers to grow with you whilst capturing more value as they scale.

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.
Acquiring new customers is expensive. Growing existing ones is profitable. Identify expansion opportunities from usage patterns and needs. Design clear upsell paths that feel natural, not pushy. Time offers to renewal cycles and milestones. Structure pricing that enables growth.
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Determine how to charge for products and communicate value to maximise willingness to pay whilst remaining competitive and supporting desired positioning.
Calculate the total revenue a customer relationship generates over its entire duration to guide acquisition spending and retention priorities.