What is tiered pricing?
An example of an AI chatbot conversation about tiered pricing models in business.
Can you explain what tiered pricing is?
Sure! Tiered pricing is a strategy where the price of a product or service varies based on the quantity purchased or the level of service.
What are the benefits of using tiered pricing?
The benefits include increased sales, better customer segmentation, and the ability to cater to different customer needs.
Can you give me an example of tiered pricing in action?
Absolutely! A common example is subscription services, where users pay less per month if they commit to a longer subscription period.
How do businesses decide on the tiers?
Businesses typically analyze customer behavior, market trends, and competitor pricing to determine the most effective tier structure.
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