David launches his pricing page with three tiers: Basic at $99, Pro at $299, and Enterprise at $999. He expects most customers to choose Pro, the sweet spot tier where his company makes the best margins. Two weeks later he checks the data. 75% of customers are choosing Basic. They're going for the cheapest option, not the best value.
This happens everywhere because most pricing tiers aren't designed to guide customers toward the target tier. They're just random feature lists at different price points with no strategic thought about how buyers make decisions. Customers see three options and default to the cheapest unless you've designed the tiers to make your target option feel like the obvious choice.
Good tier design isn't listing features at different prices. It's strategic packaging where each tier is deliberately crafted to drive customers toward your highest-value option. Here's the framework for pricing tiers that guide buyers to where you want them.
The Pricing Tier Framework
Your goal is to design three tiers in a Good/Better/Best model where most customers naturally choose "Better" which is your target tier. Your strategy uses Basic (Good) as intentionally limited to push customers up, Pro (Better) as the sweet spot with best value where you target 60 to 70% of customers, and Enterprise (Best) offering premium features for large customers willing to pay more.
This isn't about offering three equal options and letting customers pick randomly. It's about creating a strategic progression where each tier serves a specific purpose in your revenue model.
The Good/Better/Best Model
Tier 1: Basic (Good) - The Anchor
Basic exists to make Pro look like great value. Price it as a low entry point at $99 a month. Include only core functionality with intentional limitations like 5 projects maximum, basic features only, and email support. This tier is deliberately constrained.
About 20 to 30% of customers will buy Basic—typically small teams trying you out or very small companies. You expect most of them to upgrade as they grow and hit the limits. The design principle is simple: make it just good enough to get started but limited enough that they want more.
Tier 2: Pro (Better) - The Target
Pro is where you want most customers because this is your money-maker. Price it at the sweet spot around $299 a month. Include unlimited core usage, all key features, priority support, and integrations. Remove the artificial limits from Basic and give buyers everything they need to get full value.
Target 60 to 70% of customers here—these are your ideal customer profile, typically companies with 10 to 50 employees who are power users of your product. The design principle is to make Pro obviously better value than Basic with a clear step up in capabilities that justifies the price difference.
Tier 3: Enterprise (Best) - The Premium
Enterprise serves large customers willing to pay premium prices for premium features. Price it at custom pricing starting around $999 a month. Include everything in Pro plus enterprise-specific features like SSO, SAML authentication, audit logs, a dedicated customer success manager, SLA guarantees, and custom integrations.
Expect 10 to 20% of customers to buy Enterprise—typically large companies with 50 or more employees and complex needs. The design principle is that Enterprise should feel like overkill for most companies but essential for large organizations with security, compliance, and support requirements that justify the premium.
Tier Design Strategy 1: Value Staircase
Make each tier obviously better value by creating a clear progression. Basic at $99 a month gives you 5 projects, basic features, and email support—roughly $20 per project in value. Pro at $299 removes all those limits with unlimited projects which is infinite value, all features, and priority support. Enterprise at $999 includes everything in Pro plus enterprise features and a dedicated CSM.
The progression is strategic: Basic is intentionally limited, Pro removes those limits and unlocks everything, Enterprise adds premium services on top. The psychology makes Pro feel like "unlock everything for just $200 more" which makes it irresistible compared to staying limited on Basic.
Tier Design Strategy 2: Anchor High, Drive to Middle
Use anchoring psychology by showing your most expensive tier first on your pricing page in left-to-right order: Enterprise at $999, then Pro at $299, then Basic at $99. When buyers see $999 first, $299 looks cheap by comparison. Then flip to standard order in your feature comparison table showing Basic, Pro with a "Most Popular" badge, and Enterprise. Now Pro looks like the best value positioned between two extremes.
Tier Design Strategy 3: Feature Gating Strategy
Be strategic about what features you withhold from Basic to drive upgrades. Gate advanced features like analytics and reporting, integrations with Salesforce and Slack, team features like collaboration and permissions, volume limits where Basic gets 5 projects versus unlimited in Pro, and support level where Basic gets email while Pro gets priority support.
Don't gate core product functionality, security basics, or essential workflows—these should be in all tiers. Customers need the product to work properly at every level. Gate the features that power users need but casual users can live without, which creates natural upgrade pressure as customers grow.
Example gating:
| Feature | Basic | Pro | Enterprise |
|---|---|---|---|
| Core Functionality | |||
| Project creation | 5/month | Unlimited | Unlimited |
| Templates | 5 basic | 50+ | Custom |
| Team members | 3 | 25 | Unlimited |
| Advanced Features | |||
| Analytics | |||
| Integrations | 2 | All | All + Custom |
| API access | |||
| Support | |||
| Email support | |||
| Priority support | |||
| Dedicated CSM |
Gating strategy: Withhold valuable features from Basic to drive Pro upgrades
Tier Design Strategy 4: "Most Popular" Badge
Add a "Most Popular" or "Recommended" badge to your target tier on the pricing page. This simple visual cue combined with social proof drives the majority of buyers to choose your intended tier.
When customers see "Pro - Most Popular (67% of customers choose this)" they interpret it as validation. The psychology is powerful: if most people choose this tier, it must be the right choice. You're removing decision anxiety by showing what the majority picked.
The badge serves two purposes. First, it's a visual anchor that draws the eye immediately to your target tier. Second, it provides social proof that smart buyers are choosing this option. The result is consistent: 60-70% of customers will select the highlighted tier when you properly mark it as most popular.
Tier Design Strategy 5: Make Middle Tier Obviously Best Value
Show value-to-price ratio:
Basic ($99/month):
- 5 projects = $19.80 per project
- Limited features
Pro ($299/month):
- Unlimited projects = $0 per project ← Infinite value
- All features
- Only $200 more for 10x the value
Enterprise ($999/month):
- Same as Pro + enterprise features
- 3x the price for incremental value
Middle tier = best bang for buck
Common Tier Design Mistakes
Mistake 1: Three equal tiers
All tiers have similar value
Problem: No clear winner, customers confused
Fix: Make middle tier obviously best value
Mistake 2: Too many tiers
You offer 5-6 pricing tiers
Problem: Analysis paralysis, buyers confused
Fix: 3 tiers max (Good/Better/Best)
Mistake 3: Basic too good
Basic tier has most features
Problem: No reason to upgrade
Fix: Intentionally limit Basic (5 projects, basic features only)
Mistake 4: Pro and Enterprise too similar
Pro has almost everything Enterprise has
Problem: No reason to buy Enterprise
Fix: Gate enterprise features (SSO, dedicated CSM, SLA)
Mistake 5: No "Most Popular" indicator
All tiers treated equally
Problem: Customers split evenly or choose cheapest
Fix: Highlight target tier with badge
The Tier Design Checklist
Before launching tiers:
☑ Clear progression:
- [ ] Basic intentionally limited
- [ ] Pro has unlimited/best value
- [ ] Enterprise has premium features
☑ Value staircase:
- [ ] Each tier obviously better than previous
- [ ] Middle tier best value-to-price ratio
☑ Visual hierarchy:
- [ ] "Most Popular" badge on Pro
- [ ] Pro visually highlighted (color, size, placement)
☑ Feature gating:
- [ ] Core features in all tiers
- [ ] Advanced features gated to Pro+
- [ ] Enterprise features gated to Enterprise
☑ Pricing psychology:
- [ ] Monthly pricing shown (not just annual)
- [ ] Discount for annual (save 17%)
- [ ] Price anchoring (show value, not just cost)
Testing Tier Design
A/B test variations:
Control:
- Basic $99, Pro $299, Enterprise $999
- No "Most Popular" badge
Variant A:
- Same pricing
- Add "Most Popular" to Pro
Variant B:
- Basic $79, Pro $299, Enterprise $999
- "Most Popular" on Pro
Variant C:
- Basic $99, Pro $249, Enterprise $999
- "Most Popular" on Pro
Measure:
- % choosing each tier
- Average revenue per customer
- Upgrade rate (Basic → Pro)
Pick winner: Highest revenue per customer
Real-World Tier Examples
Example 1: Notion
Free: Individual use, unlimited blocks
Plus: $8/user/month - Unlimited file uploads, version history ← Most choose this
Business: $15/user/month - SAML SSO, advanced permissions
Enterprise: Custom - Dedicated manager, advanced security
Why it works: Free tier good enough to try, Plus unlocks key features for teams
Example 2: HubSpot
Starter: $50/month - Basic CRM, email marketing (2,000 emails)
Professional: $800/month - Marketing automation, advanced reporting ← Target tier
Enterprise: $3,200/month - Predictive lead scoring, custom reporting
Why it works: Starter too limited for real marketing, Professional is "unlock everything"
The Pricing Page Layout
Your pricing page structure guides customers from value proposition to tier selection to conversion. Each section has a specific job.
Start with a value-first headline at the top. Something like "Choose the plan that's right for you" or "Start launching faster today." This sets the frame before customers see prices.
Add an annual versus monthly toggle if you offer both. Display it as a simple switch with "Annual - Save 17%" to nudge toward higher lifetime value. Annual plans give you more predictable revenue and lower churn.
Your tier cards should be visually distinct with the Pro tier elevated or highlighted. Each card shows the tier name, price, "Most Popular" badge on the target tier, three to four key features, and a clear CTA button. Basic gets "Get Started," Pro gets "Start Free Trial," and Enterprise gets "Contact Sales."
Below the cards, include a detailed feature comparison table. This is where buyers who need to justify the purchase will spend time. Show every feature across all tiers with check marks and X marks so they can see exactly what they get at each level.
End with an FAQ section addressing common pricing objections. Questions like "Can I change plans later?" and "What's your refund policy?" remove friction before it becomes a barrier to purchase.
Quick Start: Design Pricing Tiers in 1 Week
Day 1:
- Define target customer for each tier
- Set pricing (Basic, Pro, Enterprise)
Day 2:
- List all features
- Decide what goes in each tier (gating strategy)
Day 3:
- Create value staircase (make Pro obviously best)
- Design "Most Popular" visual treatment
Day 4:
- Build pricing page layout
- Write tier descriptions
Day 5:
- Test with 10 customers (show pricing page, what would you choose?)
- Iterate based on feedback
Deliverable: 3-tier pricing structure with clear progression
Impact: 60-70% of customers choose target tier (vs. random distribution)
The Uncomfortable Truth
Most pricing tiers are designed randomly without strategic thinking.
They:
- Make all tiers equal (no clear winner)
- Include too many features in Basic (no reason to upgrade)
- Don't highlight target tier (customers split evenly)
- Don't test variations (guess at pricing)
Result: Customers choose cheapest tier, low revenue
What works:
- Strategic gating (limit Basic, unlock with Pro)
- Value staircase (Pro obviously best value)
- Visual hierarchy ("Most Popular" badge on Pro)
- Test and optimize (A/B test tier structure)
The best pricing tiers:
- 3 tiers (Good/Better/Best, not 5+)
- Middle tier highlighted (Most Popular badge)
- Clear progression (Basic limited → Pro unlimited → Enterprise premium)
- 60-70% choose Pro (not evenly distributed)
- Tested (A/B test variations, optimize)
If customers aren't choosing your target tier, your tiers aren't strategically designed.
Gate strategically. Highlight target. Test relentlessly.