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Pricing models

Graduated pricing

The precise name for tiered pricing where each band is charged at its own rate rather than repricing the whole quantity.

Graduated pricing charges each band at its own rate, cumulatively. It is what most people mean when they say “tiered”, and naming it explicitly avoids the ambiguity with volume pricing.

It behaves like an income tax band: crossing a threshold only changes the price of the units above it. That makes the total a continuous function of volume, with no cliff and no case where buying more costs less.