tiered pricing

Levels of cost

Tiered pricing is a pricing structure where rates change based on quantity or level of service.

The more you buy or use, the different the rate—sometimes cheaper per unit at higher volumes, sometimes more expensive as usage increases.

Utilities often use tiered pricing: The first 500 kilowatt-hours cost less than the next 500.

Software companies offer tiered pricing with basic, professional, and enterprise levels.

Opposites
pricing structure

tiered pricingflat rate

Unchanging price regardless of quantity

pay-per-use · dynamic pricing · surge pricing

pricing complexity

tiered pricingtransparent pricing

Clearly disclosed cost structure

Family

tier, pricing

Familiarity
Top 200,000
Profile
Used worldwide · Timeless · Abstract · Rated G