Knowledge Center

Run billing with Floatless.

Product guides, billing concepts, operational playbooks, developer references, and security notes for teams running subscription revenue.

Tiered Pricing

Tiered pricing applies different rates to different quantity ranges, with each tier priced independently.

When should I read this?

Read this if you want to offer graduated pricing where the rate decreases (or increases) as quantity grows.

How it works

Floatless uses a "Graduated" logic, meaning the price changes only for the units that fall into that tier.

Example: Per-seat pricing

Tier Range Rate
1 1-10 seats $15/seat
2 11-50 seats $12/seat
3 51+ seats $10/seat

For 25 seats:

  • Tier 1: 10 seats × $15 = $150
  • Tier 2: 15 seats × $12 = $180
  • Total: $330

Tiered vs. Volume pricing

Model Behavior
Tiered Each tier priced separately, cumulative
Volume Single rate applies to ALL units based on total

Setting up tiered pricing

When creating a price:

  1. Select "Tiered" pricing model
  2. Define tier ranges and rates
  3. Set billing interval

Best practices

  • Reward growth — lower rates for higher tiers
  • Clear boundaries — avoid confusing tier structures
  • Communicate value — show savings at higher tiers

Common patterns

Pattern Description
Graduated discount Lower per-unit cost as quantity increases
Graduated premium Higher per-unit cost for specialized tiers
Flat + tiered Base fee plus tiered add-ons

(Average cost per unit: $0.093)

📉
Volume vs. Tiered: Unlike "Volume Pricing" (where all units get the lower price once a threshold is reached), Tiered Pricing protects your margins on the initial units.