Price Ladder

A pricing structure that presents multiple versions of a product at escalating price points, designed to guide preference toward a specific target tier — typically the middle. The bottom tier serves as an anchor, the top tier expands the range of acceptable spending and may act as a decoy, and the middle tier captures the largest share of conversions. The spacing of the rungs, the feature distribution, and the labeling of each tier all affect the ladder's effectiveness. The price ladder is one of the most replicated patterns in digital commerce, appearing across SaaS, ecommerce, and subscription services.

Example: Spotify's three-tier structure — Individual, Duo, Family — positions Duo as the natural choice for couples, priced precisely between the solo and household options.