Pricing · Tier Logic
Three tiers, double the ARPU.
Why Single-Tier Is Limiting
Single-tier forces every buyer into the same pricing box. High-value buyers cannot spend more; low-value buyers feel the price is too high. Tier architecture solves both problems, with the anchor effect as a bonus.
01
+142%
ARPU tier vs. single
02
28%
Premium tier adoption
03
12%
Anchor tier adoption
The Architecture
- Tier 1 (Standard): 65% of buyers, lowest price as entry point
- Tier 2 (Premium): 28% default adoption, 1.5x standard price
- Tier 3 (Anchor): 12% adoption, 2.3x standard price
- Cross-tier upgrade path automated after 3 purchases
Example
A wine club switched from single-tier (65) to 3-tier (65, 98, 148). ARPU rose from 65 to 96 without losing buyers. The anchor tier (Connoisseur) had only 12% adoption, but it pushed the premium default into the 28% range.
How to Set the Anchor
The anchor tier should be 2 to 3x the standard price, with clear added value (not just a higher price). Examples: concierge service, limited editions, pre-release access. 12% adoption is fine; the lever is the anchor effect it creates on the premium tier.
„Pricing architecture is psychology, not mathematics.”