Pricing
Tactic
Arrange Discounts in Tiered Amounts
Reaching one threshold makes it easier to enter another threshold.
Overview
Suppose that customers get $50 off when they spend $200.
In this scenario, customers need to spend $200 — which might be tough to imagine. In order to make this discount more realistic (and thus enticing), businesses need to strengthen the mental imagery of spending $200.
How? They can offer tiered discounts.
- $50 off $150
- $20 off $50
- $5 off $20
Customers might struggle to imagine the $150 threshold, but the lowest tier — $20 — is easy to imagine.
And now it gets sneaky: Once they imagine spending $20, it becomes easier to imagine the next threshold of $50. Then $150.
Lower tiers provide a sequence of mental images that gradually transform a high threshold into a feasible reality.