# Tiers and fences: good, better, best > Three plans let different buyers choose for themselves, if each plan earns its place and the fences between them are real. Klasna Club's tiers, then Dana's three offers. - Course: [Pricing: Set, Package and Raise Your Prices](https://productovi.com/courses/pricing.md) - Module: What exactly are we selling? - Lesson 14/32, ~27 min - Source: https://productovi.com/courses/pricing/tiers-and-fences ## A cheaper door **Alex Tutor:** At Klasna, the Club team is planning the 2027/28 line-up. Club Plus starts in March as an upgrade for the members who put down deposits. Now Nazar wants a cheaper way in. **Nazar:** Remember the Club Plus survey: lapsed members and non-members put the acceptable range for Plus at 310–450. If even the richer plan tops out at 450 for them, the Club at 450 is at the very edge. So: **Club Lite** at 250. AI partner only, up to 120 minutes a month, no speaking clubs. **Alex Tutor:** That gives three plans at rising prices, each including more: **good–better–best**. Different buyers choose for themselves, and most should land in the middle. **Alex Tutor:** Before the numbers, what is a line-up like this actually for? > **Exercise:** Klasna plans three Club plans at rising prices: Lite 250, Club 450, Plus 650, each including more. What is the main point of a line-up like this? > **Club line-up, draft for September 2027** > > | Plan | Price a month | What's included | > |---|---|---| > | Club Lite | 250 | AI practice partner, up to 120 minutes | > | Club | 450 | Speaking clubs + AI practice partner | > | Club Plus | 650 | Club + two small-group sessions with a tutor + a monthly progress report | **Sofia:** Lite is for the people whose range stopped at 450? **Alex Tutor:** Yes, a door for them that doesn't touch the Club's price. But a cheaper plan only works if it doesn't pull existing members down. > **Exercise:** Why does a cheaper Club Lite make sense for Klasna, according to the evidence so far? ## Fences that hold **Hanna:** My worry: a member who mostly uses the AI partner drops to Lite. Club leaves 343.75 a month on average, Lite about 195.75. Every downgrade costs us about 148. **Alex Tutor:** Put Hanna's worry into numbers for twenty members. > **Exercise:** Hanna estimates that a Club member leaves 343.75 UAH of contribution a month on average and a Club Lite member about 195.75. If **20** Club members drop down to Lite, how much monthly contribution does Klasna lose? In UAH. **Alex Tutor:** That's what **price fences** are for: the rules that decide who gets which plan. A good fence is real, easy to check, respectful, and hard to cross for people it isn't meant for. **Alex Tutor:** Here the fence is the speaking clubs, the main reason most members stay. Lite has none, plus a 120-minute cap. Someone who values the clubs won't drop down. **Leo:** Why not just offer Lite to people who say they can't afford the Club? **Alex Tutor:** Because you can't check it, everyone could say it, and asking people to plead poverty is humiliating. Fence by what's included, not by who people claim to be. > **Exercise:** Which fences between Club Lite and Club are good ones? Select all that apply. ## The top plan has to earn its place **Alex Tutor:** Now Club Plus. It adds two small-group sessions a month. A tutor gets 450 per 45-minute session, shared by everyone in the group, up to six people. **Nazar:** Full groups: 2 × 450 / 6 is 150 per member. Plus leaves 650 × 0.975 − 95 − 150 = 388.75. More than the Club's 343.75. Good. **Hanna:** With 31 people we won't fill every group. Check groups of four. > **Exercise:** Club Plus costs 650 a month (0.975 of it is left after the payment fee). It carries the Club's direct cost of 95 a member plus two small-group sessions a month; a tutor gets 450 per session, shared by everyone in the group. What contribution does one Club Plus member leave a month if the small groups have **4 people**? In UAH, to two decimals. **Sofia:** So a better plan can earn less than the base one, if the groups are half empty. **Alex Tutor:** Exactly. Each tier must earn at least what the one below it does. For Plus that means filling groups: fixed slots, five or six people, waitlists rather than tiny groups. **Alex Tutor:** And the middle plan has to be the honest favourite, not a decoy. Never add a top plan meant only to make the middle look cheap. ## Dana's three offers **Alex Tutor:** Today a different business, too: Dana wants her own good–better–best. Her base is 600 per lesson, which takes her an hour and a half with preparation and messages. **Dana:** Single lesson, 600. A monthly plan: four lessons plus homework feedback in the messenger, 2,800. And an interview sprint: six lessons in three weeks plus two recorded mock interviews with written feedback, 6,000. **Alex Tutor:** Price each by what it includes, not as a discount; discounts are a later module. Check your net per hour after the 6% tax. The sprint takes 12 hours: 9 for lessons, 3 for the mock interviews. **Alex Tutor:** Start with the base: what does her single lesson pay per hour? > **Exercise:** Dana charges 600 UAH for a single lesson, which takes her an hour and a half with preparation and messages. What does she earn **per hour** after the 6% tax? In UAH. > **Exercise:** Dana's interview sprint costs 6,000 UAH and takes her 12 hours of work (9 for the lessons, 3 for the mock interviews). What does she earn per hour of her work on the **interview sprint**, after the 6% tax? In UAH. **Dana:** So the sprint finally pays like Klasna, because it's priced on what a job interview is worth, not on my hours. **Alex Tutor:** Yes. The monthly plan is the middle, for steady learners. Its fence is a fixed weekly slot within the calendar month; the sprint's is a three-week window for a real goal. **Sofia:** And the single lesson stays for people who want to try, or come once in a while. > **Exercise:** **True or false:** in a good–better–best line-up, the top plan should be priced so that almost nobody buys it, because its job is to make the middle plan look cheap. **Dana:** Help me write the three lines for my price list. Short, so people can choose in ten seconds. **Alex Tutor:** For each: a name, what's included, the price, and the condition that makes it different. **Sofia:** And nothing hidden in small print. > **Exercise:** Write the three lines of Dana's price list (one line per offer): name, what's included, price, and the fence that separates it from the others. Her offers: a single 60-minute lesson for 600; a monthly plan of four lessons at a fixed weekly time within the calendar month plus homework feedback in the messenger for 2,800; an interview sprint of six lessons in three weeks plus two recorded mock interviews with written feedback for 6,000. > **Key ideas** > > - **Good–better–best** tiers let different buyers choose for themselves; most should land in the middle, which must be an honest favourite, not propped up by a decoy. > - **Price fences** decide who gets which plan. Good ones are real, checkable and respectful: what's included, a usage cap, a fixed slot. Not «people who say they can't afford it». > - A cheaper tier must not pull existing customers down: each Club-to-Lite downgrade would cost about 148 a month. > - A better tier must earn at least what the base one does: Club Plus leaves 388.75 with full groups of six but 313.75 with four, below the Club's 343.75. > - Price richer offers by what they include: Dana's interview sprint earns 470 an hour, her single lesson 376. **Alex Tutor:** Next time: free, trial or guarantee. What Dana's free first lesson really costs, and whether the Club needs a trial. - Previous lesson: [The value metric: what the price grows with](https://productovi.com/courses/pricing/the-value-metric.md) - Next lesson: [Free, trial or guarantee: what each costs](https://productovi.com/courses/pricing/free-trial-or-guarantee.md) --- Productovi Learning. Free, no sign-up needed to read.