Over the past several weeks, we’ve been exploring the power of subscription models. Layering tiers onto a subscription approach can be very beneficial to your business, giving you access to customers you might not otherwise have access to.
Often a business will offer several levels or tiers of a product or service. One example I use to describe this is Toyota’s family of brands which includes Scion, Toyota, and Lexus. Scion is the lower-priced tier – affordable and reliable transportation for people with a limited budget. Toyota is the mid-priced tier for those who can afford a few more standard amenities and Lexus is the luxury brand tier.
Toyota knows that it needs to meet people where they are at in terms of budget. This way, they have access to different markets and make loyal customers with the hope that those customers will move to the next tier over time.
So that’s a general example of the tier concept.
With that in mind, I want to share with you how Uncommon Wealth Partners uses this strategy in our business. We offer clients subscriptions to our suite of services and offer them in tiered pricing. We have clients literally all over the world, with a wide range of ages and with a wide variety of financial situations, so creating a tiered approach really makes sense for us. Let me show you how it works.
As our client base grew, we wanted to establish a model that would work for this wide range of wonderful people we were coming in contact with. A tiered approach has been a helpful solution. We wanted to provide this tiered approach so people could access our services at a level that was comfortable for them.
What’s great is that it’s pretty simple. Here’s how it works for us: Our tiered approach is based on the level of time and interaction you want and also the level of accountability you are looking for in reaching your goals.
Our lowest tier is $365 or a dollar a day to develop a plan that includes 1 meeting a year. Our middle tier is at $1,000 for 4 quarterly meetings to review your plan and hold you accountable. We ask questions about the quarter ahead and help you prioritize tasks, goals, and measurements.
Our top tier, $2,500 a year, we are available monthly to meet with you and help you accelerate your financial fitness. We offer coaching and consulting to help you think and act strategically around your wealth-building goals. For example, we might help think through launching a business, repurposing a business unit, or purchasing multiple real estate properties.
Not For Everyone
For us and for many businesses, a tiered approach can provide access to several niche markets that would not be available with a more one-size-fits-all approach. But a tiered subscription model is not for everyone and that’s ok.
For instance, Fab Fit Fun is one of my wife’s favorite subscriptions, and it’s the Surprise Box Model. They offer their boxes at one fixed price on a quarterly basis. Their boxes correspond with the seasons and they offer products for beauty, fitness, wellness, and home. You can buy just one box or pay the subscription fee for an entire year of the whole year at the lower price, but they don’t offer multiple tiers.
Is A Tiered Approach Right for You?
What do you think? Looking at your business, your customers and the final product or service you provide, could a tiered pricing approach help add to your client base and boost your profitability? If you think it’s a good fit, a tiered approach is definitely worth exploring.