Article · Article, around 10 to 12 minute read

The Good-Better-Best Approach to Pricing

Rafi Mohammed · Harvard Business Review Freemium Beginner

This is the canonical piece on packaging one product into three tiers so it stretches across price-sensitive and premium buyers at once. Mohammed gives real guardrails: rough price gaps between tiers and how much revenue to expect from each, which is exactly the practical framing you need when small startups and large companies are looking at the same product. Treat it as a starting template for your own good, better, best structure, not a rule to copy line for line.

• A stripped-down Good tier attracts price-sensitive buyers (small startups), the Better tier holds your core users, and a feature-rich Best tier lets large companies spend more.
• Practical guardrails: keep Good within about 25 percent below Better, and Best within about 50 percent above Better, so the ladder reads as coherent.
• The tiers do the segmenting for you: buyers self-select by need and budget instead of you negotiating every deal from scratch.