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
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.
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On that note, here’s my question to you…