Pricing Models

Tiered Pricing

A pricing structure offering multiple plans at different price points, each with a distinct set of features or limits.

Tiered pricing lets a business serve multiple customer segments simultaneously — offering a starter plan for early-stage buyers, a growth plan for scaling teams, and an enterprise plan for large organisations. Each tier is designed to feel like the right fit for a specific customer profile, with the middle tier typically doing most of the conversion work. The psychological effect of the middle-tier anchor is well-documented: customers presented with three options disproportionately choose the middle one. Tiers must have clear, meaningful differences; if the lower tier is only marginally worse than the higher one, customers do not upgrade. The risk of too many tiers is decision paralysis. Most SaaS businesses settle on three tiers (starter/growth/enterprise) as the sweet spot between simplicity and segmentation.