If you’re a business owner, then you know that one of the most important things you can do to grow your company is to find the right pricing strategy. Determining how much to charge for your products and services can be tricky, says Jay Holstine, but it’s essential if you want to make a profit. One popular pricing strategy is called tiered pricing.

Tiered pricing, according to Jay Holstine, is a type of price discrimination where companies charge different prices to different groups of customers based on factors like quantity purchased, frequency of purchase, or type of customer. By charging different prices, companies can maximize their profits by targeting different segments of the market.

Quantity-based tiered pricing: This type of tiered pricing charges different prices based on the number of goods or services purchased. For example, a company might offer a discount for customers who purchase more than 10 items.

Frequency-based tiered pricing: This type of tiered pricing charges different prices based on the frequency of purchase. For example, a company might offer a discount for customers who make more than one purchase per week. Continue Reading.