Table of Content:
What is Tiered Pricing?
Tiered pricing is a pricing strategy that offers different pricing levels or tiers based on specific criteria. Customer can access lower prices or additional benefits as they move up to higher tiers. It is a way to incentivise customer loyalty or encourage higher volume purchase.
Use Cases for F&B Industries
Happy Hour Specials: F&B Establishments, particularly bars or restaurants, often implement tiered pricing during specific time periods, such as happy hours.
Different price tiers can be applied to various drinks or food items, encouraging customers to take advantage of discounted prices during off-peak hours.
Buffet Services: Buffet-style restaurants commonly employ tiered pricing based on different meal times or days of the week. Prices may vary depending on whether it is breakfast, lunch or dinner, with higher-tier pricing typically associated with dinner or weekends when more extensive menu options are available
Event Catering: F&B catering services often offer tiered pricing for events based on guest count or menu selection. Lower tiers could be designed for smaller groups or simpler menu options, while higher tiers accommodate larger events or customized menus.
Use Cases for Retail Industries
Seasonal Pricing: Retailers can introduce tiered pricing based on seasons or promotional periods. They may offer lower prices or special discounts during off-peak seasons or specific times of the year to attract more customers and drive sales.
Loyalty Programs: Customer who reach higher tiers based on their spending or loyalty points can enjoy more significant discounts, offers or early access to new products
Use Cases for Beauty/Services Industries
Specialist Services: Beauty salons or spas with specialized services can implement tiered pricing. Different tiers can reflect the level of expertise or experience of the service provider. Higher-tier pricing may be applied when booking appointments with senior or master-level professionals.
Seasonal Pricing: Beauty salons or spas have the flexibility to implement tiered pricing that aligns with seasons or promotional periods. During peak seasons, they can adjust their pricing to be higher, while during off-peak seasons or specific times of the year, they can offer lower prices.