Many Australian SMEs struggle to maximise revenue from existing customers. Tiered pricing, when done right, is a powerful tool to encourage ‘trading up’ – getting customers to choose a more valuable package than their initial consideration. It’s about presenting options that feel genuinely better, not just more expensive. We’ve seen significant success with clients using this approach, and here’s how to structure it for the Australian market.

The key isn’t just *having* tiers, it’s how you define them. Avoid simply adding features incrementally. Instead, focus on delivering distinct value propositions at each level. Think about solving different levels of customer pain. A ‘good’ tier addresses a basic need, a ‘better’ tier solves a specific problem, and a ‘best’ tier delivers a transformative outcome. This ‘problem-agitation-solution’ framework works well when communicating the benefits of each tier.

Here are a few insights to consider:

• Anchoring with a Premium Option: Always include a higher-priced tier, even if few customers choose it. This makes the middle tier look like excellent value. It’s a psychological trick, but a very effective one.
• Feature Bundling, Not Just Addition: Don’t just add one feature per tier. Bundle features that work together to create a compelling package. For example, instead of ‘reporting’ in the middle tier, offer ‘customisable reporting with data visualisation’ – a more substantial benefit.
• Focus on Outcomes, Not Inputs: Australians respond well to tangible results. Frame your tiers around what the customer *achieves*, not just what they *get*. Instead of “10 email templates”, try “Increase lead generation by 15% with our proven email templates”.
• Highlight the ‘Sweet Spot’ Tier: Visually emphasise the middle tier. Use colour, placement, or descriptive language to draw attention to it. This is where most customers will ultimately land, so make it appealing.

Finally, remember to continually analyse your pricing performance. Track which tiers are most popular, and gather feedback from customers who trade up (or don’t). A/B testing different tier structures can reveal valuable insights. Don’t be afraid to refine your offerings based on what resonates with your audience. By focusing on value and understanding your customers’ needs, you can create a tiered pricing system that drives significant revenue growth in 2026 and beyond.

To get started, map out your ideal customer’s journey and identify the key pain points at each stage. Then, design tiers that specifically address those needs, offering increasing levels of value and support.