What is a price ladder and tiers?

Price ladder — is a structure or pricing model where prices are organized in the form of steps or levels, usually with increasing values. This model is often used to create various pricing offers or packages, allowing customers to choose the appropriate level based on their needs and budget.

Tiers are specific steps or categories within the price ladder. Each tier may include a certain set of features, services, or volume of the product at a corresponding price. For example, in a SaaS product, there can be basic, standard, and premium levels with different costs and functionalities.

Example:

• Tier 1: basic access — $10/month
• Tier 2: extended access — $20/month
• Tier 3: full access — $30/month

Thus, the price ladder and tiers help structure monetization, making it understandable and flexible for users.