It's called market segmentation. The classic analogy is airline seats.
Ultimately the job of the airline is to get me from A to B. They do just that for First Class and sub-economy. But for more money you can have snacks etc.
Airlines offer add-ons that cost them real money (checked bags) and things that don't (seat selection.) They allow the customer to decide which features they want and which they don't.
Not all seats generate the same profit, but all seats generate some profit above marginal cost. (Usually some number of seats needs to be filled before the flight makes a profit, but that's a different equation.)
With software there's naturally some segmentation, and so the smart company tries to capture that value. Equally some segments want different (expensive) things like Support (and can afford it) so that needs to be on the table to win that customer in the first place.
A segmented offering is inevitable, at which point you then have to decide who does the segmenting. The client? Or do you have a salesperson to help them?
There's no right answer, but usually it depends on the product price. If I'm buying an airline seat I can figure it out [1]. If I'm buying an airplane probably not.
[1] I'm old enough to have lived in a time when there were specialists necessary to buy an airline seat.
Ultimately the job of the airline is to get me from A to B. They do just that for First Class and sub-economy. But for more money you can have snacks etc.
Airlines offer add-ons that cost them real money (checked bags) and things that don't (seat selection.) They allow the customer to decide which features they want and which they don't.
Not all seats generate the same profit, but all seats generate some profit above marginal cost. (Usually some number of seats needs to be filled before the flight makes a profit, but that's a different equation.)
With software there's naturally some segmentation, and so the smart company tries to capture that value. Equally some segments want different (expensive) things like Support (and can afford it) so that needs to be on the table to win that customer in the first place.
A segmented offering is inevitable, at which point you then have to decide who does the segmenting. The client? Or do you have a salesperson to help them?
There's no right answer, but usually it depends on the product price. If I'm buying an airline seat I can figure it out [1]. If I'm buying an airplane probably not.
[1] I'm old enough to have lived in a time when there were specialists necessary to buy an airline seat.