three tier proposal

The “3-Tier” Proposal: How to Stop Leaving Money on the Table

Stop sending proposals with a single price. Learn how the “Goldilocks Effect” increases your rates and use our free calculator to generate your 3 tiers instantly.

If you are sending freelance proposals with a single price at the bottom, you are losing money.

It’s a bold claim, but here is the psychology behind it. When you present a client with one price (e.g., “Web Design: £2,000”), you are forcing them into a binary decision:

  • “Do I want this, or do I not want this?”

  • “Is this cheap, or is this expensive?”

It becomes a Yes/No question. And often, “No” is the safer bet.

But when you present three options, the psychology changes completely. You shift the conversation from “Should I hire them?” to “Which level of service do I need?”

This is called the Goldilocks Effect, and it is the single fastest way to increase your average project value.

Why 3 Tiers Work (The Psychology)

Big agencies and SaaS companies (like Zoom or Dropbox) have used this for years. As a freelancer, you can do the exact same thing.

1. The Anchor (The VIP Option) You start by showing a high-priced “Premium” option. You probably don’t expect them to buy this. Its job is to make your middle option look affordable by comparison. A £2,000 website looks expensive. But a £2,000 website sitting next to a £5,000 “Growth Package” looks like a bargain.

2. The Target (The Standard Option) This is the package you actually want to sell. It contains exactly what the client asked for. Because it sits in the middle, it feels like the “safe” choice—not too cheap, not too risky.

3. The Slim (The Budget Option) This is your safety net. If your Standard option is too expensive, you don’t lose the client; they just downgrade to the “Slim” version. You strip away the extras and offer a basic version of the service. You keep the client, but you protect your profit margin by doing less work.

How to Structure Your Tiers

Let’s say you are a Logo Designer.

  • Tier 1 (Slim): Just the logo files. No variations. 1 Revision.

  • Tier 2 (Standard): Logo, Colour Palette, Business Card Design. 3 Revisions.

  • Tier 3 (VIP): All of the above + Brand Style Guide + Social Media Templates + Priority Support.

Notice the difference? The “Logo” is the same in all three. You aren’t working harder on the creative; you are simply bundling in extra value or removing friction (like faster turnaround time) for the higher tiers.

The Pricing Calculator

Struggling to figure out your numbers?

Don’t guess. Enter your “Target Price” (what you would normally quote) into the tool below, and it will automatically generate a 3-tier pricing structure for your next proposal.

Proposal Pricing Generator
Enter your “Target” fee to generate a 3-tier strategy.
£

The “Slim” Option
£0
Strip out the extras. Offer the bare minimum to solve the core problem. Great for budget clients.
The “Standard” Option
£0
This is your target. The perfect balance of value and price. The “safe” choice.
The “VIP” Option
£0
Add priority support, faster delivery, or ongoing maintenance. Anchor the price high.

How to Present This

When you send your proposal, don't just list the prices. Give the tiers names that describe the outcome, not the input.

  • Instead of "Bronze," call it "The Essentials."

  • Instead of "Silver," call it "Complete Professional."

  • Instead of "Gold," call it "Growth & Scale."

Give your clients the power of choice, and watch your conversion rate climb.

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