This is a list of my favorite psychological pricing techniques that you can start implementing today.
price anchor ring
Price anchoring refers to the practice of establishing a reference point (an “anchor”) for a product’s price that consumers use to evaluate the value of other options.
This is effective because consumers tend to rely heavily on the information provided to them initially when making decisions. EG, the price will be higher.
This strategy works when offering prices or making sales calls.
attractive price
Charm pricing ends the price at 0.99 or 0.95 instead of a fraction.
The consumer mentally rounds 0.99 down to the nearest dollar amount.
In other words, they perceive a $4.99 product to be closer to $4 than $5, making it feel like a better deal.
Decoy pricing
Bait pricing is a strategy in which a company presents options not with the intention of being chosen, but rather to emphasize the attractiveness of other options.
A decoy price makes the target product seem more valuable, leading consumers to choose it over competing products.
Have you ever gone to a store and thought, “Oh, which one should I choose?”
It may have been a bait-and-switch price!
artificial time constraints
Artificial time constraints include a sense of urgency to encourage immediate purchase decisions.
Examples include limited time offers and flash sales.
This strategy exploits consumers’ fear of missing out and encourages faster purchasing decisions.
price reduction
A price reduction is a significant reduction in price from the original price.
By displaying both the original price and the reduced price, companies can emphasize the value customers are getting, increase perceived value, and encourage purchase.
This strategy is interesting because the price offered is usually the price.
price appearance
How prices are displayed can also influence purchasing decisions.
For example, when displayed in a small font size or without a dollar sign, the price seems less scary to consumers and subtly drives sales.
Alternatively, you can remove the .00 from the end of the price to make it appear cheaper (because there are fewer numbers).
Calculated pricing
Numerical pricing takes advantage of consumers’ difficulty processing numerical information.
For example, a “buy one, get one free” sale may seem more appealing than simply 50% off, even if the value offered is exactly the same.