Tiered Pricing

Tiered pricing is a pricing method used by sellers to segment the prices of their products and services based on specified target markets.

Tiered Pricing Examples

    Gasoline tiers at 87, 89, and 91
    3GB, 5GB, or 10GB on a data plan
    Iphone XR, Iphone S, Iphone X,

Deeper Insights

In order to find the true value of their products or services, sellers must regard the opinions of their customers first and foremost. Tiered and customized pricing does just that by allowing a seller to dissect customers into groups based on demand and optimize product prices to fit their appetite for purchasing.

Tiered pricing not only allows you to pick up customer segements with different price points, it also allows you to differentiate your offering. In this way, you set business up to have more potential customers, since you have more selection to offer.

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Related Keywords: Value-Based Pricing, Perceived Value, Psychological Pricing, Pricing Strategy