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Tiered Pricing Examples to Inspire Your Pricing Strategy

Maciej Wilczyński
Managing Partner, Founder Valueships

Tiered Pricing Examples to Inspire Your Pricing Strategy

They say you can’t make everybody happy. But tiered pricing may prove them wrong. Thanks to the universal approach of this pricing model, you can reach larger audiences with various offerings.

Do you need a little inspiration? We’ve selected the best pricing examples so that you can learn from the best. Benefits of tiered pricing involved.

But first, let’s start with the basics so everyone’s on the same page.

What is tiered pricing?

Tiered pricing is a model that includes different price points for different levels of a product or service. The costs depend on which level you choose. Potential clients may pick an option that suits them best. 

Most of the time, the plans are upgradable so that users can expand their plans whenever they need more powerful capabilities. 

Why tiered pricing model is effective? 

Many companies decide to choose a tiered pricing model because it works well for businesses providing the products and their clients. There are a number of reasons why. 👇

#1 Better customization

Tiered pricing means that customers can choose how much they would pay for the services and what features they’re going to use. Also, some of the businesses offer add-ons. That’s gives a room for creating your service more customized. 

What’s worth mentioning, personalization is an integral part of many B2C and B2B marketing strategies. Make sure you don't get left behind.

#2 Diverse options

You can create as many plans as your customers may need. But first things first, dig a bit to know what your customers really want. Segment them according to their choices to have a better overview and create better plans. 

However, the whole segmentation and deciding on the plans might be a bit overwhelming when doing it on your own. BUT! There’s a solution you might be interested in – Valueships. Scroll down to get more information about this platform.

#3 More predictable revenue

In contrast to the as-you-go pricing model, tier pricing gives you a transparent perspective of your potential revenue. Of course, customers come and go, and the retention rate varies, but it’s still more financially predictable. 

And when you know your revenue flow, it’s much easier to plan other things connected with a product or service development. For example, investing in research and innovation keeps your offerings competitive and up-to-date.

#4 Improved scalability across the enterprise

It is very probable for bigger companies to pay once a year rather than committing to a plan with a monthly subscription. Companies want to avoid unexpected costs. That’s why they choose annual billing. Consider implementing such a solution as well. 

#5 Long-term planning

If your revenue stream is predictable, planning long-term is more effective. And having clear goals really helps and motivates. Making a plan entails analyzing the potential risks and possible outcomes. With this approach, companies are better prepared to handle challenges that may arise in the future.

#6 Market segmentation

Your clients are all unique — with different budgets, desires, and preferences. Grouping them helps companies target specific customers better – you’ll be able to offer them exactly what they are looking for. Customer satisfaction will go up! Who doesn’t like tailored solutions? Perhaps you’ll attract new customers who were looking for options that weren't available before. 

📰 See psychological pricing tactics

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How to enhance your tiered pricing strategy?

Check out our tips to maximize the price tiering potential.

01 Make it transparent

It’s a good business practice overall. And it’s super important regarding pricing plans, spending money, etc. When there are some hidden costs, the pricing is not clearly displayed on a website, and customers may become suspicious and, in the end, give up choosing you. 

In this matter, when you want to build trust and be credible, put the pricing cards on the table. Having a clear pricing policy lowers resistance, and increases upsells – people know what they are buying and what their perspectives are on doing business with you.

02 Show monthly and annual billing options 

SaaS (software as a service) companies often provide both payment options – monthly and annual billing. They show that yearly plans are more profitable – prices are much lower than when subscribing to a monthly plan. 

However, the purpose of showing two different pricing options is to let them know that if they’re interested in short-term cooperation, that’s possible, too.

💡 TIP: Make it clear that there are two billing options – monthly and annual, but show them the annual prices first.

03 Create enough plans for companies at every stage of development

… untill your target is only enterprises, startups, etc. Then, make sure that you provide different pricing thresholds for, for example, the enterprise level. Other than that, try to create an offer for everyone. Of course, as some claim, it is impossible to make everybody happy, but this is how tiered pricing is an exception to this rule. 

04 Make checking on competitors a habit 

If you know what’s up with your competitors, you will not miss the moment for a key change in your product and services. It is because you know what they are missing in their tier pricing – it’s your chance to make a move and change your plan to your advantage. Simply to deliver what they don’t.

But when talking about some product developments, it often means changing the pricing plans. Besides, analyzing competitor pricing structures helps you identify gaps in your own tiers.

05 Read feedback frequently

Not quite sure how to tweak your tiered pricing? Start by reading feedback and reviews from your customers. It should be one of the core components of your tiered pricing strategies. You’ll find out the areas where tiers may fall short or whether they are perfect enough for the users.

06 Offer trial periods 

Show them how good your plans are! Make it possible to sign up for a free trial of the highest plans (and lower ones as well). Then, the potential customers will see in practice if the tier plan they’re up to is their final pick. Besides, check out if the competitors provide free trials. If not, it’s your chance to get a competitive edge.

07 Check on the customer satisfaction metrics 

After implementing tiered pricing, pay attention to these metrics: customer retention, renewal rates, and feedback scores. Based on them, you can assess the success of your pricing tiers in delivering value. 

💡 Businesses need to grasp customer satisfaction levels. Then, they can keep customers interested by slightly changing their pricing and feature offerings.

08 Be ready to answer prospects’ questions 

Newcomers may have questions – about the tiered pricing, services, products, anything. Give them the possibility to reach out to you easily. It might be an implemented live chat, a form, or even a FAQ at the bottom of the page is a good practice as well. 

Pricing tiers examples

Let’s check how tiered pricing models look in practice. We’ve picked SaaS companies that you might know. 

#1 Asana

Asana is a tool for managing tasks and projects. It's a digital to-do list, but more. You can create tasks, assign them to people, set deadlines, and track progress. It's useful for individuals and teams to stay organized, work together, and complete projects on time.

Check out Asana’s tier-pricing model:

At their tier pricing site, they’ve got: 

  • three tiered plans 
  • option for enterprise companies
  • prices are displayed both with monthly and annual billing
  • information that a credit card is not required
  • feature list for each plan
  • free plan
  • general FAQ at the bottom of the page
  • list of companies that use Asana

What makes it special?

At first glance, their tiered pricing strategy focus is to be transparent. Everything is crystal clear. Also, whenever prospects have a question, there’s a chat on their website.

#2 Zapier 

It is an automation tool that connects various apps and services, enabling them to work together seamlessly. It makes the repetitive tasks perform themselves – the tool triggers action in one app based on events in another. 

Zapier is designed to help individuals, enterprises, freelancers, mid and small-sized businesses across diverse industries. 

Here’s what you can learn from Zapier’s tiered pricing:

  • five pricing tiers
  • all of them come with a free trial
  • feature list of each plan
  • prices are displayed both with monthly and annual billing
  • a lot of currencies available
  • below the pricing tier, you can see the comparison of the plans in greater detail
  • visitors may ask questions via chatbot

What makes it special?

Zapier’s pricing is very detailed – prospects see how much they will pay for the number of tasks Zapier will complete.

#3 Smartsupp

If you want to implement a customer service tool, Smartsupp is one of the options. It provides companies and individuals with live chat and chatbot software. Companies at every development stage may use it because of their well-thought-out, feature-based pricing. 

Let’s take a close look at their tiered pricing strategy:

  • four pricing tiers
  • free trials for each of the plans
  • Ulimate plan has a CTA button for contacting sales to get the price
  • feature list of each plan and the general comparison of the whole offering
  • prices are displayed both with monthly and annual billing
  • info about the discount when committing to annual billing
  • a lot of currencies available
  • list of companies that use the tool
  • chatbot
  • add-ons

What makes it special?

Smartsupp emphasizes what plan is the most popular among their users. It may work as an incentive or a hint of the popular choice. On top of that, the feature list below the tiered pricing is divided into sections: “Premium features,” “Core features,” and more to make it easier to navigate on the website.

#4 Kontentino

Kontentino is a tool for social media management. It simplifies the planning, creation, and scheduling of social media content. Perfect for teams and small and big businesses that want to save time and effort. 

Check out their tier-pricing solution:

  • four plans to choose from 
  • enterprise solution for bigger companies with a CTA button for getting the price
  • price calculator below the plans so customers can choose the best fit for them
  • add-ons outside the plan for more customization 
  • general FAQ
  • free trials for each of the plan
  • info about the discount when choosing annual billing
  • detailed comparison of the plans and detailed feature list

What makes it special?

Kontentino supports non-profit organizations, offering them a 50% discount. The price calculator shows the best option for a team or company. You need to enter the number of social media profiles you manage and how many users will use the app. The proposed plan is automatically shown.

#5 Miro

Miro, a collaborative online platform, serves as a digital whiteboard for teams to brainstorm, plan, and visualize ideas in real time.

  • four pricing tiers
  • free trial
  • feature list of each plan
  • various currencies available 
  • detailed plan comparison below the pricing tier
  • list of companies that use
  • FAQ

What makes it special?

Miro supports students and educational institutions, offering them a free plan with extended features. Also, their pricing website is translated into many languages, so everyone can use it despite the language barriers.

Let us help you with your tiered pricing structure

Want to implement tiered pricing, but not sure if it’s a solution for you? That’s understandable! Let us help you. Get in touch with Valueships and arrange a professional consulting session. We will guide you through the whole pricing-changing process and help you decide if it’s a good business step. 

We optimize business models by creating subscriptions and identifying new monetization opportunities. Our Pricing Consulting Team understands that pricing is key to your growth. And the numbers speak for themselves – check out the case studies

Don't overlook the opportunity for pricing optimization – let us guide you through the tiered pricing strategy. 

Tiered pricing: FAQ

What is tiered pricing, and how can it benefit businesses?

Tiered pricing is about offering products or services at varying price points based on customer segments, creating different tiers to match customer needs and budgets. This approach maximizes customer value and profits through pricing in line with product value. For businesses, this model optimizes revenue through customer diversity. Pricing tiers also boost sales.

How do different price points in tiered pricing work for different customer types?

Distinct price points within tiered pricing serve diverse customer needs by offering tailored options. Different tiers match customer segments. Also, varied pricing tiers, based on the volume pricing model, allow businesses to attract and serve a broader range of customers effectively. 

How can I determine which tiered pricing structure is suitable for my products or services?

Consider contacting Valueships for a pricing consulting session. Determining the ideal tiered pricing structure might not be a piece of cake. 

Analyze your target market and customer segments. But you don’t have to do it yourself. Create pricing tiers with Valueships. With Their Valueships' expertise in crafting profitable pricing tiers, including three-tiered pricing strategies and subscription-based models (and others), you can attract new customers. 

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Maciej Wilczyński
Managing Partner, Founder Valueships

Expert in B2B pricing, monetization and value-based selling strategies. Over the past year, he has completed over 40 consulting projects in Europe. Prior to founding Valueships, he worked at McKinsey & Company, mainly in the TelCo, software, and banking industries. He completed his doctorate in pricing in SaaS start-ups at the University of Economics in Wrocław, where he also lectures.

Schedlue a free consultation
Maciej Wilczyński
Managing Partner, Founder Valueships

Expert in B2B pricing, monetization and value-based selling strategies. Over the past year, he has completed over 40 consulting projects in Europe. Prior to founding Valueships, he worked at McKinsey & Company, mainly in the TelCo, software, and banking industries. He completed his doctorate in pricing in SaaS start-ups at the University of Economics in Wrocław, where he also lectures.