Pricing segmentation is the practice of setting different prices for different customer groups based on their willingness to pay, value received, and buying context.

Instead of using one uniform price, companies segment customers by factors such as company size, industry, use case, product usage, contract value, urgency, and competitive alternatives. Each segment is priced differently to reflect how much value it derives and how price-sensitive it is.

In B2B, pricing segmentation is essential because value is not evenly distributed across customers. Enterprise buyers, high-usage accounts, or customers with clear ROI tend to have lower price sensitivity, while smaller or more commoditized segments are more price-sensitive.

Pricing segmentation is typically implemented through tiered pricing, packaging differences, usage-based models, discount guardrails, and contract structures. It works best when supported by clear segmentation logic, value-based pricing, and pricing governance.

When done well, it improves margin, reduces underpricing and unnecessary discounting, and creates more consistent pricing decisions across sales teams.