How It Works
Three simple steps to get accurate calculations
1
Set Base Service
Enter cost, time, and hourly rate for basic service.
2
Define Add-ons
Add costs and prices for upgrades in higher tiers.
3
Set Upsell Rates
Estimate percentage choosing Standard vs Premium.
4
Review All Tiers
See prices, margins, and blended profit.
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Frequently Asked Questions
What is tiered pricing?
Three-tier pricing offers Basic, Standard, and Premium at increasing prices. Psychology: Customers compare options rather than saying yes/no. Most choose middle tier, increasing average ticket 20-40%.
What percentage should choose each tier?
Target: 30-40% Basic, 40-50% Standard, 10-20% Premium. If too many choose Basic, improve Standard value. Middle tier should be the clear "best value."
How do I price add-ons?
Add-ons should have 50-70% margins. Price at 2-3x cost. Bundle at slight discount vs a la carte. Each add-on should feel valuable alone but bundled deals irresistible.
What makes customers upgrade?
Clear value gap, anchor pricing (Premium makes Standard look reasonable), loss aversion (show what they miss), convenience bundling.
Should basic tier be profitable?
Yes, always. Target 30-40% margin minimum. Never use loss leader basic - you'll get stuck with unprofitable customers.
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Results are estimates for informational purposes only. Consult professionals for important decisions.