# Tiered pricing Tiered pricing is a pricing technique that associates a specific price per unit for different tier. Those tiers are made up. As sales or times goes by, the price goes to the next tier; usually increasing asymptotically. The rationale is that if the price increases and people keep buying, it means that the price is still too low. When sales go down when a new tier has been reached, it means that the price is now either right or a tad too high. For this reason, tiered pricing is a very interesting technique to experiment with pricing and help maximizing profit while still delivering enough value. Ideally, tiered pricing should be accompanied with continuous value increase. Tiered pricing is also a great way to create time pressure and [[Fear of Missing Out (FOMO)]] for potential customers. If they don't buy now, then they might never get the product at the current price. Finally, tiered pricing is a great excuse to launch the product again and again, each time a new tier has been reached. ## Related - [[Tiered pricing equilibrium]] - [[DeveloPassion's Newsletter 059 - Broken records]]