Pricing Psychology is one of the best ways to differentiate best products from the best-selling ones.
Here are 10 Pricing Psychology tricks that *actually* help YOU sell better!
1. Reduce the number to your left by one.
This is called charm pricing.
We read numbers from left to right, and seeing a lower first digit — we perceive the price to be wayyy lower.
2. Use minimal characters
$1499 is better than $1,499 or $1499.00
Research says that your brain takes more time to perceive these extra characters making the decision seem harder.
3. Make a decoy to sell the ideal
The decoy effect is when you buy the highest-tier popcorn because the small one is too small…
And the price difference between medium & large makes the latter feel like a wiser choice.
4. Include something for Free
If the customer is willing to pay for a product and you include something extra for free, the perception of the offer goes up.
What are you more likely to buy?
A t-shirt with free shipping or t-shirt + shipping
Got your answer?
5. Small daily equivalents
Breaking a large price down to how much it costs to use the product daily makes it feel cheaper.
Think of buying a $365 course v/s Start learning for $1/day.
Customers rely heavily on the first piece of information they see. And use it to guide subsequent decisions.
Basically, if you want to sell something at $399, it’s better to frame it as $̶59̶9̶ $399.
Because people will start perceiving it as a better deal.
7. Sunk Cost Fallacy
If customers have invested
in a product/service — they are more likely to continue with it.
Even if the cost outweighs the benefits.
Think of Amazon Prime subscription for a minimal fee but ending up spending a fortune on Prime Day.
8. Present pricing as individual installments if financing is available
Investing in a SaaS tool for $100 for a year sounds more daunting a commitment than…
Start today for as low as $19.99/month.
9. Bundle products
The consumer mind wants everything fast & easy. So rather than running circles around price comparisons, it’s better to bundle up and provide packaged value.
P.S. DTC & e-commerce brands can use this to increase AOV.
10. Shift from value to a percentage.
Selling a $20 item at 50% OFF sounds more compelling than getting $10 OFF on the same item.
It’s the same pricing but the number % feels like a far better deal.
If you liked this post, you’d love my newsletter even more.
On that note, here’s my question to you…
What’s one pricing psychology tactic that you always fall victim to?
Let me know in the comments!