Pricing Tiers

Good-better-best plans that serve different customers at different prices.

Also known as: pricing tiers, good better best, plan tiers

Pricing tiers (good-better-best) sort customers into plans by needs and willingness to pay: a starter tier for small teams, a professional tier for the core, an enterprise tier for the demanding. Three tiers outsell one price because they let each segment self-select instead of averaging everyone into a plan fitting nobody.

starter $29:   core value, limits, self-serve (volume + land)
pro $99:       the product whole: integrations, history, priority (the revenue engine)
enterprise custom: SSO, SLA, security review, procurement (few deals, big checks)

Design tiers around value gaps that matter: usage limits that bite growing teams, features enterprises require (SSO, audit logs, DPA), support levels with real cost differences. The middle tier should be the obvious choice for the ideal customer — most revenue lives there.

The classic mistakes:

Too many tiers. Five plans paralyze choice; buyers default to cheapest. Three (plus enterprise/custom) is the tested shape — complexity belongs in add-ons, not plans.
Tiers by features nobody values. Differentiating on checkmarks customers never asked for. Tier on the value metrics customers already track (willingness to pay).
Free tier competing with paid. A generous free plan cannibalizing starter conversions. Draw the paid line where business value starts (freemium).
Enterprise tier as an afterthought. “Contact us” with nothing behind it loses deals mid-process. Define enterprise inclusions (security, SLA, support, terms) before the first RFP arrives.
Never repricing tiers. Value grows, costs shift, segments evolve — frozen tiers drift from reality. Review structure yearly alongside raising prices.

Present them on a pricing page that guides to the middle: anchor high, highlight the target tier, and let the tiers sell the segmentation you designed.