Pricing Splunk’s New Service
Overview
This question evaluates a product manager's competency in pricing strategy, covering customer segmentation, value-based versus cost-plus approaches, competitive benchmarking, packaging tiers, and experimentation for enterprise B2B observability and security analytics products.
Splunk
Jul 4, 2025, 8:28 PM
Product Manager
Onsite
Product / Decision Making
4
0
Pricing a New B2B Service for a Mid-Size Tech Customer
Context
You are a Product Manager evaluating how to price a new service in the observability/security analytics space for a mid-size tech company where you previously interned. The goal is to outline a rigorous pricing approach a PM would use for an enterprise/B2B product.
Prompt
How would you determine the price? Discuss the following:
- Customer segmentation (who, why, and how to segment).
- Value-based versus cost-plus approaches (trade-offs and when to use each).
- Competitive landscape (how to benchmark and differentiate).
- Packaging tiers (good/better/best, value metrics, and add-ons).
- Experiments and research you would run to validate and iterate on pricing.
Solution
Login required
Show