Pricing New Product Capabilities: To Charge Or Not To Charge?

Product managers face challenges with new features, improved functionality, or other enhancements that provide additional value. For each new capability, the product team must decide whether to add it to the existing product at the existing price, use it to justify a higher price, or offer it as an option at an additional charge. The wrong decision can result in lost revenue or decreased customer satisfaction. In this report, we examine the factors to consider when deciding how to price new product capabilities.