Build a tiered pricing model

Who this is for

Founder led lower-middle market companies with 5 to 50 million in annual revenue that want clear price steps and higher average order value.

The quick answer

Use three tiers that match clear outcomes. Good. Better. Best. Show what is included and the limits for each tier. Make step ups obvious so buyers can self select. Keep the top tier as an anchor with premium response and extras. Provide one page price cards and simple scripts so every rep can explain value in the same way.

The method in seven steps

Start with outcomes
List the three outcomes your buyers value. Faster delivery, higher uptime, lower total cost are common.
Define Good Better Best
Good delivers the core result with standard response. Better adds stronger outcomes most buyers want. Best includes premium response and extras for a few.
Set inclusions and limits
Write one table per tier. What is included, the service level, and any cap. Limits create price fences and protect margin.
Price the steps
Choose a Good price that protects margin. Price Better so most buyers trade up. Use Best as the anchor. Test step sizes such as one point two times and one point seven times Good.
Create price cards and scripts
One page per segment with a short script for discovery, value line, and objections. Train reps to use the same language.
Pilot and measure
Run the tiers for one quarter with a small rep group. Track distribution across tiers, win rate, margin, and time to close. Adjust limits or service levels if buyers stall.
Align delivery and success
Confirm that operations can meet each promise. Add a handover checklist so customers know what they get.

Example

A maintenance firm added three coverage tiers. Average order value rose twenty three percent and on time service improved because expectations were clear.

Pitfalls and fixes

Invisible differences between tiers. Make changes obvious and tied to outcomes.
Too many tiers. Three is enough for most markets.
Over promising. Confirm delivery capacity before launch.
Custom exceptions. If a change is common, update the tier. Otherwise hold the line.

Checklist

Three outcomes mapped to service levels
Good Better Best with limits written
Prices set with clear steps
Price cards and scripts ready
Pilot plan and review dates set
Operations readiness confirmed