Product Packaging
Product packaging groups features, limits, service levels, and add-ons into offers customers can buy.
What is Product Packaging?
Product packaging determines what customers receive in each offer: features, usage allowances, access roles, service levels, support, and optional add-ons. Pricing determines what those offers cost. The decisions are related because moving a capability between plans can change the perceived value even when the listed prices stay the same.
Example in SaaS
A data product offers Starter with one connection, Pro with ten connections and scheduled reports, and Business with centralized access controls. Each package is designed around a different operational need. The vendor validates whether customers can identify the right package without deciphering a long list of unrelated checkmarks.
What to watch for
Packaging should create understandable choices rather than arbitrary obstacles. Gating a basic prerequisite behind a high tier can prevent customers from experiencing value. Entitlement logic must also match the promise across the interface, APIs, exports, and integrations. Jason Cohen’s pricing essay explains why price and offer structure influence the wider business model, including sales and support expectations.
Source and further reading
Jason Cohen: Pricing determines your business model
Related terms: Entitlements, Tiered pricing.