Pricing tiers strategy

Tiers control how the per-unit price drops as more buyers commit. The mechanic is simple, but a few rules of thumb separate deals that fill from deals that stall.

How tiers work

A tier has two values: target join count and per-unit price. Higher tiers must require more joiners than the previous, and must cost less than the previous.

Example:

• Tier 1: 10 joiners at N5,000
• Tier 2: 25 joiners at N4,500
• Tier 3: 50 joiners at N4,000

The deal locks at the highest tier the join count reached when the deadline passed. Every joiner pays the locked tier's price.

Setting good tiers

• Tier 1 is your floor. If only 10 people join, this is your worst-case revenue per unit. Set it close to your break-even.
• Top tier is the price you would charge a wholesaler. Make sure your supplier discount at that volume actually exists.
• Tier gaps should reward sharing. A buyer should feel meaningfully better off telling friends.
• Number of tiers: 2 to 4 work best. More than that is overwhelming.

Tier psychology

Buyers see the next tier and become emotionally invested in unlocking it. A deal one join away from tier 2 will spread faster than one that just unlocked tier 2. Position your tier targets at numbers that look attainable.