Pricing Strategies: #6 Common Mistakes while Configuring Pricing

"Why does this month's billing feel messy again?"

That was the exact line Priya muttered while staring at the spreadsheet full of edited pricing, one-off discounts and mismatched subscription details. 

Her business was growing, but the pricing machine wasn't going anywhere. Instead, it looked like a complex cockpit.

Customers asked for new currencies.

Some needed recurring services, while others requested one-time work.

A few wanted add-ons.

Many asked for discounts.

All she did was manually adjust everything.

Priya wasn't making mistakes; she was doing what most growing businesses do: making pricing decisions relatively instead of structurally.

In this final post on pricing, let's understand the most common mistakes that businesses make, along with the solution that could give you more control and consistency.

Using One Pricing Method for Every Offering 

"Let's just put everything under one flat price..... for now." 

Priya priced products, one-time work, and recurring services all the same way, which made billing inconsistent and unpredictable. It was easy when offerings were limited, but as offerings diversify, so does the pricing approach.

Zoho Billing lets you price each offering using the correct billing method.

• Items for physical goods.

• One-time charges for standalone services.

• Subscription plans for recurring services.

• Project/Time logs for services tracked by hours or expenses.

 This ensures pricing reflects how value is delivered, not how convenient it is to invoice.

Using Recurring Invoice Instead of Proper Plans 

"We'll send the same invoice every month. Easy." 

Recurring invoices work well when customers' needs rarely change. But in reality, customers request more hours, fewer hours, temporary pause, mid-cycle upgrades or downgrades, etc. Each request will lead to a manual edit.

Zoho Billing handles recurring value through subscription plans, not repeated or recurring invoices. It is built to handle,

• Offering a trial.

• Auto-renewals.

• Proration for mid-cycle changes.

• Usage/quantity changes.

• Plan upgrades & downgrades.

The system updates billing dynamically, eliminating the need for manual adjustments.

Cramming Everything into a Plan Instead of Using Addons 

"Let's just modify the plan for this customer, as we always do." 

Every time a customer needs an extra hour or seasonal enhancement, businesses edit the plan. This quickly led to a bloated catalog full of slightly different plans no one could track.

Zoho Billing offers add-ons that can blend with plans to provide flexibility in providing it as a service

• Standalone addon for optional extras.

• Recurring addons for permanent upgrades.

• One-time addons for temporary boots.

• Quantity-based addons for "I need more" scenarios.

• Usage-based addons for metered services.

• Addon groups for organised selection.

Plans stay simple. Addons handle customisation.

Offering Discount Without Structure 

"Sure, we can discount this once... and maybe next time too..." 

Manual case-by-case discounts seem harmless at first, but quickly become inconsistent and financially risky. Customers expect them, and margins erode silently.

Zoho Billing turns discounts into controlled, trackable Coupons. You can define coupons with

• Percentage or fixed amount.

• Applies to plans, add-ons, or the entire invoice.

• Expiry dates.

• Maximum redemption limits

• Per customer redemption limit.

• Eligibility based on customer or item.

• Multiple coupon codes under one rule.

 Discounts become strategic and not spontaneous.

Using the Same Price for Every Market or Customer 

"Let's just convert the price manually for all overseas customers." 

Selling globally means dealing with different currencies, purchasing power, and expectations. Manually converting them causes confusion, errors and loss of trust.

Zoho Billing allows localised and segment-based pricing through Pricelist. It can be configured to,

• Markup/Markdown for broad adjustments.

• Individual item pricelist for multi-currency control.

• Pricelist for subscription plans & addons.

• Bulk import for an extensive catalog.

• Customer-specific price list assignment.

• Pricelist selection during checkout.

 Your pricing remains consistent, competitive and accurate worldwide.

Assuming Pricing Doesn't Need to Evolve 

"Our plans have worked for 3 years. No need to change it." 

As customers grow, their needs change, but most businesses forget to adapt their pricing. This leads to mismatched expectations, reduced revenue, and churn.

With Zoho Billing, pricing evolves effortlessly.

• Plans can be upgraded or downgraded.

• Addons allow scalable customisation.

• Coupons support retention campaigns.

• Pricelist adapts pricing for new markets.

• Billing models can be mixed and matched.

 Your pricing system becomes future-ready, even if you are offering changes tomorrow.

Letting Billing Drive Pricing Instead of Strategy Driving Pricing 

"We price based on what's easy to bill; taking customer expectations into account will put us into a lot of complexity." 

Many businesses set pricing based on operational convenience rather than value, market demand, or growth strategy.

Zoho Billing becomes the infrastructure that supports strategic pricing:

• Flexible pricing models.

• Structured plans.

• Scalable add-ons.

• Rule-based discounts.

• Localised pricelist.

You no longer price based on what the billing tool can handle; instead, the billing tool adapts to your pricing strategy.

Stop Being Reactive to Pricing Changes, Stay Proactive 

Businesses evolve every day, and it has become hard to manage them with spreadsheets or a tool that is too rigid to adapt to these changes.

​
One can grow by stopping reacting to pricing problems and building a pricing system with ample room to customise.

​
Zoho Billing provides that system. It helps you deliver value cleanly, price confidently, sell globally, retain customers intelligently and scale without breaking your billing process.

​
Now and in the years to come, Pricing isn't just about maths. It's more strategic, and Zoho Billing helps you execute it flawlessly. 

• Topic Participants

• Hari Hara Sudhan. S

  

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