Blue Harbor Software

Glossary

Discounting
Selling below the list price, usually to win or keep a deal.
List price
The published price before any discount.
Packaging
How features are grouped into editions, tiers and add-ons.
Price fence
A rule that keeps a customer from buying a package meant for another segment.
Value metric
The unit a price scales with, chosen because customers see more value as it grows.
Willingness to pay
The most a customer would pay for a product before choosing an alternative.