3 min read

The Art of Pricing Strategy: Boosting Your Revenue With Three Tiers



In the world of business, pricing your products or services effectively is an art as much as it is a science. Finding the sweet spot that maximizes your revenue while keeping your customers satisfied is a challenge every business owner faces. Fortunately, there's a simple yet powerful pricing strategy that Ryan Lazanis, CPA of Future Firm uses to coach hundreds of firms globally that can dramatically boost your revenue, and it's all about presenting your prospects with three pricing options.

Picture this: you're scrolling through a website, contemplating whether to purchase a product or service. You come across a pricing page that offers not one, not two, but three different options. It's a common sight, but have you ever wondered why businesses do this? What's the psychology behind it? Let's delve into this pricing strategy and explore how it can work wonders for your business.


The power of three pricing options

The top tier anchors the price: The highest-priced tier serves as an anchor in your prospect's mind. By positioning it at the top, you're setting a reference point for your customers. This "luxury" option makes the other two tiers seem more reasonable in comparison.

The bottom tier is a baseline: The lowest-priced tier functions as the baseline, offering a budget-friendly option for those who are price-sensitive. This tier is essential for attracting cost-conscious customers.

The middle tier Is the sweet spot: The middle tier is where the magic happens. This is the option you want most of your customers to choose, and you price it accordingly. Studies show that a significant 66% of people will opt for this middle choice.



The psychology behind the three tiers

Now, you might be wondering why this strategy is so effective. The psychology behind it lies in how our brains perceive value and make decisions.

When presented with three options, our brains automatically start comparing them. The top tier sets a high benchmark, making the middle tier appear reasonable and the bottom tier a steal. This cognitive process often leads customers to select the middle option because it strikes a balance between value and cost.

According to studies, approximately 23% of people will choose the low-priced option, while 11% will opt for the high-priced one. That means a whopping 77% of people will select either your top tier or middle tier options when presented with three choices.



A Strategy for Raising Prices

If you're looking to increase your prices but are unsure how to go about it without scaring away your customers, this pricing strategy is your answer. Here's how you can implement it:

Present three options: Start by offering three distinct pricing tiers. Your current rate becomes the baseline for comparison.

Price your top and middle tiers higher: Ensure that both your top and middle tiers are priced higher than your current rates. The high-end option anchors the price, and the middle tier becomes the sweet spot that attracts most customers.

Communicate value: Make sure your customers understand the value they'll receive at each tier. Highlight the benefits and features that come with each choice.



By using this approach, you can gradually increase your prices without alienating your existing customer base. Your customers will appreciate having choices, and most will gravitate towards the middle tier, which now offers more value than ever.

Pricing is a vital component of any business strategy, and presenting your prospects with three pricing options is a powerful technique to boost your revenue. By anchoring the price with a top-tier option, providing a budget-friendly baseline, and placing your ideal offering in the middle, you can tap into the psychology of decision-making and increase your sales.

Incorporate the power of three pricing options into your business strategy and watch your revenue soar. It's a simple yet effective approach that can make a world of difference in your bottom line. Don't hesitate to explore this strategy and take your business to new heights.


Ryan Lazanis, CPA, shares this valuable pricing strategy as a way to help firm owners like you take control of their pricing and, ultimately, their revenue. If you've found this blog insightful, you might want to explore more of Ryan's insights through his newsletter sent to 9,000+ firm owners. With two emails per week filled with tactics and templates to help firm owners reclaim their free time, it's a resource worth checking out.

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