What is tiered pricing and how does it work?
An example of an AI chatbot conversation about tiered pricing models and their benefits.
What is tiered pricing and how does it work?
Tiered pricing is a strategy where the price per unit decreases as the quantity purchased increases. It encourages bulk buying.
Can you give me an example of tiered pricing in action?
Sure! A software company might charge $10 for one user, $8 per user for 10 users, and $5 per user for 50 users.
What are the benefits of using tiered pricing?
Benefits include increased sales volume, customer loyalty, and the ability to cater to different customer segments.
Are there any downsides to tiered pricing?
Yes, it can complicate pricing structures and may confuse customers if not communicated clearly.
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