What is a distinguishing feature of graduated tiered pricing?

Graduated tiered pricing is characterized by the way prices are structured based on differing quantities purchased. In this pricing model, the total cost is calculated by applying different rates according to the volume that falls within each specific tier. For example, if a customer purchases a quantity that crosses into multiple tiers, the pricing will reflect the base rate for the initial tier, a higher rate for the next tier, and so forth, thereby summing the total based on the amount that fits into each individual tier. This approach allows for greater flexibility and incentivizes larger purchases, as customers pay less per unit for amounts that fall into lower tiers.

In contrast, predetermined pricing before the purchase, fluctuating prices due to demand, or charging the highest tier price for all purchased units do not accurately represent the graduated tiered pricing model. The defining aspect is the summation across tiers rather than a flat or uniform pricing structure.