Tiered pricing

« Back to Glossary Index

Tiered Pricing

Tiered pricing is a pricing strategy where suppliers offer different prices to different parties, such as receptive operators, tour operators, and group leaders. This allows each party to earn a profit by marking up the supplier’s price, while still offering a fair price to customers.

Through tiered pricing, suppliers can offer discounted prices based on the volume of product purchased, or other factors such as the size of the group or the length of the stay. This incentivizes customers to buy more from the supplier, with the added benefit of the middle parties being able to mark up prices to earn a profit.

Overall, tiered pricing is a win-win strategy for both suppliers and their partners. It allows them to maximize profits and stay competitive in an ever-changing market while ensuring customers still receive a fair price.

« Back to Glossary Index
0 Shares