Monetization Playbook #5: How to use three-tier pricing for services

Three-tier pricing your services

How to maximize profit by capturing more demand along the curve.

The emergence of self-serve software over the last 20 years has brought about radical transparency in pricing. 

The previous mantra of "call us for pricing" is becoming a thing of the past––save the poker played at high-end enterprise sales.

So what does this mean for the professional service profession? Borrowing a leaf out of the software go-to-market book may be the answer.

Behavioural psychology tells us that three pricing tiers are optimal. Think Goldilocks. Then framing the offering takes on the following shape.

– Done by you

– Done with you

– Done for you

Creating and distributing meaningful educational content helps make the entry-level "done by you" attractive when carried out at scale. 

Communities, academies, and workshops are fuelling the success of the mid-tier "done with you."

And the done for you–well, that one needs no explaining.

The best offerings will encompass all three––thereby soaking up demand at key intervals along the economic supply curve.