Sixty per cent choose the middle tier. It has the thinnest margin.

In most three-tier offers, the tier that wins the majority of deals is the one nobody has priced properly, and there is a reason it drifts that way.

By Steve 5 min read
Abstract bridge artwork for Sixty per cent choose the middle tier. It has the thinnest margin.

Three-tier pricing is close to a default in productised services and software. Good, better, best. The commercial logic is sound: tiers let buyers with different willingness to pay sort themselves without a negotiation, and they replace a bespoke quote with a decision the buyer can make quickly. What tends to go wrong is narrower than the design itself. Look at gross margin by tier in a mature three-tier offer and a familiar shape appears. The entry tier is efficient because it is templated. The top tier is efficient because it…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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