Pricing · strategy stress test

Raise the price, or bundle?

Your costs are up 12%. You sell a subscription product against one close competitor. Do you raise the price, bundle more into it, or hold?

Your customers can switch, but not for free. Your competitor watches your price page. Whatever you do in the first week, they answer in the second.

You (product company) versus Your main competitor. Payoffs are modeled, not measured.

Your opening moves

• Raise the price 15%. Pass the cost through and accept some churn.
• Bundle more in at the same price. Fold two paid add-ons into the base plan and hold the sticker price.
• Hold the price and absorb the cost. Do nothing visible and wait for the competitor to move first.

The assumption you control

Share of customers who would leave at the higher price. The rehearsal shows the value at which the best opening move changes. Twist: A low-price entrant appears.

Concepts at work: Repeated Game, Prisoner's Dilemma. See the glossary and all rehearsals.