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JEM - Marketing Bureau

3 killer pricing tricks

The psychology of pricing is more relevant than you’d expect. Today we’ll recall what we know about the psychology of pricing, i.e. the forces that make people perceive the product as cheaper, better, or just make them feel that “the price is right”. 

Pricing is generally arbitrary. There’s no real reason why a handbag costs €200 or €1,000. No real justification for paying €100 for a meal at a restaurant. When it comes to pricing, nothing is concrete. But we are forced to see prices as fair or unfair, high or low – otherwise, we’ll be unable to make any decision. Surely, we could concentrate every time we purchase something and try to calculate how much the work behind the product cost, how the price fits in our budget, throw in a couple of other factors, create an Excel sheet… But it’s very, very rare that our brain is willing to do that. Generally, we just see a price and think “high” or “low” or “okay”. And since this is a shortcut in our decision-making process, an intuitive decision, it’s easy enough to trick us into feeling that the price is better in some way than it is.

Here are the scientifically proven methods to do that: