Partitioned Pricing Architecture
Break total costs into base price plus add-ons to reduce perceived expense and increase total revenue.
Explanation
Customers evaluate partitioned prices (base + fees) differently than bundled prices, often underweighting additional charges. This allows higher total revenue while maintaining lower perceived entry price. Works because people anchor on the base price and treat add-ons as separate, smaller decisions. Most effective when add-ons feel optional initially but become necessary.
Real-World Example
Airlines: $200 flight + $25 bag + $15 seat + $8 priority boarding = $248 total vs $248 all-inclusive feels more expensive. SaaS: $50 base + $10/user + $20 premium features feels cheaper than $80 comprehensive plan. Hotels: room rate + resort fee + parking.
How to Apply
Identify which elements customers consider 'core' vs 'extras.' Lead with competitive base price, partition premiums and usage fees separately. Make base price comparison-friendly, add-ons value-focused. Ensure add-ons feel like customer choices, not company fees. Test different partitioning strategies for total revenue optimization.