Packaging ********* What is packaging? ================== We define packaging as the presentation of products and pricing. This definition is straightforward in the world of CPG_ (e.g. the box containing an ink cartridge or a disposable razor) but it’s not obvious how this translates to a software based business model. While there aren’t any physical containers for cloud software products, any description of a product can be seen as a form of packaging. This presentation commonly occurs in several places: - Product and pricing menus in public documentation - Quotes that are generated during the pre-sales process - Contracts that get signed to complete the sale - Application billing views that present product and pricing configuration - Invoices that detail the total amount due for each product Why is packaging important? =========================== Communication and alignment are critical within business modeling. Having alignment on what products are sold at a given price is essential to running the business. This is primarily accomplished using common packaging methodologies to group products at different price points. For example, many subscription based software companies will offer different packages on their pricing page. An example of this can be found within the `Wikipedia case study `_. Another perspective on packaging is to think of it as a blueprint for rating (e.g. invoices, line items). Which products, when they are delivered, and at what price can be codified in a package. While it's possible to sell products without this standardization, it's much easier to agree on terms with the details upfront! This type of organization aligns well with the primary goal of configuration, which is ultimately automation. Thus packaging is a keystone within the realm of business modeling. .. _CPG: https://www.investopedia.com/terms/c/cpg.asp .. toctree:: :hidden: grouping invoicing inheritance