Three tiers were designed. Almost everyone buys the cheapest.

A tiered price list is a theory about who your customers are. When the mix collapses into the bottom tier, the theory has been tested and found wanting.

By Steve 5 min read
Abstract bridge artwork for Three tiers were designed. Almost everyone buys the cheapest.

A three-tier price list makes a claim. It says that buyers differ in what they are willing to pay, that the difference can be detected, and that the business has found a way to let higher-value buyers sort themselves upward without being told to. When the mix comes back heavily weighted to the entry tier, one of those three claims has failed. Which one matters a great deal, because the fixes point in opposite directions. The instinct in the room is usually to add features to the middle tier or…

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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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