a single source, nothing corroborates it

Build the cheap flexible tier for the many

The expensive tier is rarely where the market sits: far more people want occasional access than a permanent dedicated setup, so treating the low tiers as leftovers wastes the bulk of demand. A cheap tier containing one unit of real usage changes what the product is in the buyer's head, from something they pay to occupy to somewhere they go when they need it. Decide, too, whether your pricing is manufacturing a tenant or a member.

The method

1. 01

   Build a very cheap tier that lets a lot of people pay a little towards keeping the thing available to them, and put one unit of real usage inside it so it is not purely symbolic.

2. 02

   Easy flex options at the bottom of the range change what the product is in the buyer's head, from somewhere they are paying to occupy to somewhere they can go when they need a change, and that version appeals to far more people.

3. 03

   The expensive tier is not where the market sits: many more people want an occasional break from their routine than want a permanent dedicated setup, so stop treating the low tiers as leftovers.

4. 04

   A tenant and a member are not the same customer: one pays to consume a resource, the other pays to belong and then both gives and takes, so decide which one your pricing is manufacturing.

What it returned

• $25

  The $25 basic tier carried one drop-in day a month with additional days discounted, and the launch email pitched it as spreading the cost of the building so everyone could join at whatever tier suited them.

• Hillman says the basic and six day tiers are what made this reframing work at Indy Hall.

• Hillman argues the tier structure should demonstrate the value of the community before, during and after the period when someone needs the space itself.

Sources

• The ultimate guide to structuring your coworking space membershipsAlex Hillman · dangerouslyawesome.com · How we figured out the levels · 2015-10-01