The Psychology of Pricing

Unravel the intricate web of pricing psychology and its profound impact on consumer behavior. Delve into the subtle art of price setting, exploring how numerical values can influence perceptions, drive purchasing decisions, and ultimately shape a business's bottom line.

Introduction

We underestimate some seemingly irrelevant factors and small details that can in fact influence the perception of pricing and eventually induce a potential customer to buy – or perhaps not – a specific product.

The details I am talking about are based on psychology and brain functioning
How our brains perceive and process what we see when it comes to choose between many different pricing options.

Avoid colors in the pricing sections

Colours are typically used to highlight or “add a weight”

By reducing the colouring as much as possible, you make the pricing plans look lighter and thus more affordable
Remember, coloring is not always a bad thing in pricing sections

Highlight Your Most Expensive Plan

This strategy is not meant to convince a customer to purchase the most expensive plan.

The first reference price for your product will be the highest one as this will make the remaining plans look much cheaper compared to what they saw in the first place.

Position the Price Tag at the Top

Place the price tag at the top of the packaging so that potential customers think they must be lighter and thus more affordable

Study found that the location of a product image on the packaging influences consumers’ perceptions on what they call “visual heaviness”

Final thoughts

Avoid overly coloring in pricing plans

Position the price tag at the very top of the plan section
Shorten the distance between the offered plans.
Name your offered plans so that users can focus on what they are getting rather than what they will be paying for
Highlight the most expensive plan with very light coloring

Shorten the distance between the available plans

Try to shorten the distance separating the pricing plans and bring them together as much as possible

In a study, participants were more likely to choose a bag from the group that was having the shortest distance between available bags
Customers will feel like they will be taking advantage of the benefits listed in pretty much every pricing plan, even if they go with the cheaper options