Tiered Pricing

Tiered Pricing is a pricing strategy that involves offering different prices based on the quantity, quality, or value of the product or service being offered. This pricing strategy is commonly used in e-commerce, SaaS, and other subscription-based businesses. For instance, a SaaS company may offer a Basic plan for $10 per month, a Standard plan for $20 per month, and a Premium plan for $30 per month. Each plan varies in features and benefits, such as the number of users, storage, and functionalities. Another example is a restaurant offering a set menu with different tiers of pricing. The basic tier may include an appetizer, main course, and dessert for $30, while the premium tier may include a more extensive selection of courses, wine pairings, and exclusive seating for $100. Tiered pricing allows businesses to target different customer segments and cater to their specific needs and budgets. It can also encourage customers to upgrade to higher-priced plans or products, resulting in increased revenue for the business.