A short derivation
Many pricing models are divided into three tiers, for example GOLD, SILVER, BRONZE. The questions that arise are
- How do we ensure that customers buy the middle price as intended?
- What is the right spread?
I have been searching for the ideal three-tier pricing model for a long time and present my two models here. I will deliberately refrain from giving a detailed derivation here.
As a reminder: The Fibonacci sequence consists of the numbers 1, 2, 3, 5, 8, 13, 21, 34, etc., which are obtained by adding two consecutive numbers.
THE IDEAL THREE-TIER PRICING MODEL
Method A (“Fibonacci sequence”) with the number ratio: 1 – 3 – 8
Method B (“Golden ratio”) with the number ratio: 1 – 4 – 10
|Method||Low Price||Mid Price||High Price|
The aim is to sell the medium-priced package as often as possible, not the cheapest. Of course, the price level must be reflected in the product or service characteristics.
I think the Fibonacci model works everywhere.
The Golden Ratio model may be more appropriate for high-end goods and services.
What do you think? I look forward to hearing your feedback!
I SUPPORT YOU ON THE WAY TO YOUR SUCCESS
I am a strategist, an innovator, an unconventional thinker, a mover and shaker and therefore I do the right things sooner and better.
And with pleasure also for you.
Together we can discover new market opportunities, steer product branding into the right direction, understand your customers better – and stand out from the competition with tailor-made products for your target group. All this leads to more customer satisfaction, greater customer lifetime value and more sales potential.
Can you afford not to go for it?