Tiered Pricing

What is Tiered Pricing?

Tiered pricing is a pricing strategy in which a product or service is offered at different price points - each based on certain features, benefits, or services. This allows businesses to cater to different segments of their target market, as customers are able to choose the level of features or service that best meets their needs and budget.

For example, a software company may offer a basic version of their product with limited functionality at a lower price point, while offering a premium version with advanced features at a higher price point. Similarly, a gym may offer different levels of membership with varying access to equipment and services.

Tiered pricing can be an effective way to increase revenue and customer loyalty by offering options that meet the needs and budgets of a wider range of customers.

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