← DictionaryTiered Pricing
also called good better best
Presenting several priced options with increasing scope or access.
Three versions so people choose rather than decide whether.
What It Is
You will find Tiered Pricing in the Business layer, alongside the rest of Pricing. In practice it means this: presenting several priced options with increasing scope or access.
It is a repeatable structure, which means it only pays off when it is actually followed through instead of quoted. Once it is defined that clearly, arguments about it usually stop.
How It's Used
You will usually meet Tiered Pricing in commercial decisions, pricing conversations and how the business runs. It normally appears alongside Pricing Model, Package and Price Anchoring. The practical test is whether anyone can follow it without the person who wrote it in the room.
Why It Matters
Tiered Pricing is cheap to get right early and awkward to fix late. When it is unclear, margin leaks in places nobody is looking. Clarity here removes a surprising amount of downstream argument.
Picture flat-pack instructions. Boring, and much faster than improvising. Three versions so people choose rather than decide whether.
Termshift™
How the meaning shifts depending on who is using it, and where.
Professionally, Tiered Pricing carries the narrow meaning: presenting several priced options with increasing scope or access.
Explained to someone with no marketing background, Tiered Pricing is three versions so people choose rather than decide whether.
The Bottom Line
If you only keep one thing about Tiered Pricing: three versions so people choose rather than decide whether. Everything after that is detail.