Product and price: verify that every tier promises and delivers a credible difference.
Answer:
Product-price coherence does not mean price rises with the number of features. Each tier must offer a distinct benefit that is credible to a segment, economically deliverable and sufficiently separated to guide choice without making the prior offer irrational.
Method and decision:
Name the job and distinct result associated with every tier; features matter only when they explain why a segment pays more. Calculate the two bounds: incremental cost plus minimum margin, and incremental value or prudent willingness to pay. Simulate entry-to-middle, middle-to-premium and premium-to-middle migrations using their respective contributions. Test that customers understand the difference without excessive assistance and that observed choice matches the intended segment. Retain, move closer or move apart tiers according to perceived value, margin, likely migration and choice clarity.
Worked example:
Offers are priced at €39, €69 and €109, with variable costs €16, €28 and €46. Prudent willingness to pay is €55, €88 and €130. Unit margins are €23, €41 and €63. The €69 offer delivers €33 incremental perceived value for a €30 gap, leaving a narrow zone. If 20% of its buyers migrate to €39, contribution loss is €18 per migration. Reinforce the distinct benefit at €69 or reduce its price; merely adding a low-valued feature does not repair the inconsistency.
Limits:
Willingness to pay can vary by context and presentation. Migration estimates need observed choice. A ladder can be coherent economically but too complex to communicate.