🚀 Medial just raised $500k in Pre-Series A. Tap to read the announcement. 🎉
Login

Back to feeds

Sairaj Kadam

Stealth • 1m

The Psychology Behind Pricing Strategies: Why You Pay What You Pay Ever wondered why a product costs $9.99 instead of $10? Or why luxury brands rarely go on sale? Pricing isn’t just about numbers—it’s about perception, behavior, and psychology. Here’s how businesses set prices to maximize revenue: 1. Charm Pricing: $9.99 vs. $10 We see $9.99 and unconsciously process it as “less than $10.” This small difference creates the illusion of a better deal—even though the savings are minimal. 2. Anchoring Effect: The Power of Comparison When you see a high-priced option next to a moderately priced one, the latter suddenly feels like a bargain. Restaurants use this with “premium” dishes to make regular items seem affordable. 3. Bundling: Value Over Individual Costs Ever bought a “combo offer” because it felt like a steal? Bundling products together makes you feel like you’re saving money, even if you wouldn’t have bought all items individually. 4. Prestige Pricing: High Prices, High Value Luxury brands use high pricing to signal quality and exclusivity. For some, a $1,000 handbag isn’t just about the bag—it’s about status and identity. 5. The Decoy Effect: Shaping Your Choice Imagine two coffee sizes: small ($2) and large ($4). Adding a medium at $3.50 makes the large seem like a better deal. Businesses introduce a decoy to nudge you toward their desired option. 6. Odd vs. Even Pricing Odd prices (e.g., $19.97) suggest value, while even prices ($20) suggest quality. It’s a subtle cue based on what you want to communicate. 7. Scarcity & Urgency: Fear of Missing Out Phrases like “Limited stock” or “Offer ends soon” trigger a fear of missing out, pushing customers to act quickly rather than overthink. Pricing is more than math—it’s psychology. Businesses know how we think, and they price products to influence our decisions. Next time you see a price tag, ask yourself: Is this strategy at play? Follow For More!

11 replies5 likes
1
Replies (11)

More like this

Recommendations from Medial

Image Description

Sandip Kaur

Stealth • 5m

The Psychology of Pricing: How to Set Prices That Sell Pricing isn’t just about numbers; it’s about psychology. Understanding how people think can help you set prices that not only attract but also convert. Here’s how: 1. The Power of “9”: Ever wonde

See More
1 replies3 likes
2

Only Buziness

Stealth • 13d

Pricing Strategies:- 1. Cost-Plus Pricing: Adds a markup to production costs. - Example: A $10 product sold for $15 ensures profit. 2. Value-Based Pricing: Prices reflect perceived customer value. - Example: Apple charges premium rates for i

See More
0 replies12 likes
5
Image Description
Image Description

Arcane

Stealth • 11m

Mind Games: The Decoy Effect 🧠💡 Ever feel like a third option makes one of the original choices suddenly more appealing? There's a reason for that: the Decoy effect! Here's how it works: ⭐ Imagine you're choosing a phone plan: * Option A: 2GB

See More
2 replies8 likes
1

Arcane

Stealth • 5m

"Few people make financial decisions purely with a spreadsheet. They make them at the dinner table, or in a company meeting. Places where personal history, your own unique view of the world, ego, pride, marketing, and odd incentives are scrambled t

See More
0 replies4 likes
Image Description
Image Description

Shuvodip Ray

 • 

YouTube • 6m

How do we determine the value of a product or service when setting prices, and what factors should be considered in deciding pricing strategies?

4 replies5 likes

Rakshak Gupta

 • 

Quixy • 4m

Successful boba business strategy and expansion plans - Despite the challenging location, Odd One Out grosses $77,000 monthly with high operating margins. - Higher prices at Odd One Out lead to greater order sizes, with an average customer spending $

See More
0 replies3 likes
Image Description
Image Description

Krishna mehta

Stealth • 9d

"Is SaaS a good startup idea? With scalability, recurring revenue, and high demand, it’s a promising opportunity!

3 replies8 likes
1
Anonymous

Anonymous

Stealth • 9m

🚀💰 Silver Soars! With global prices hitting a 3-year peak near $28/oz, India sees an unprecedented high at nearly ₹82,000/kg

0 replies4 likes
Image Description

Rohith R

Stealth • 11d

Imagine you’re buying pizza for your friends, and you’re faced with these options: Small: 4 slices for ₹100 Medium: 8 slices for ₹200 Large: 12 slices for ₹260 (with extra cheese!) Now, let’s rule out the Small pizza—it’s obviously not enough for a

See More
1 replies5 likes
Anonymous
Image Description
Image Description

Anonymous

Stealth • 9m

Good evening medial! I'm a social media designer! I'm willing to design your social media content for you and post it regularly, my prices are not as high . Anyone willing to connect? There are a lot more perks

5 replies4 likes
2

Download the medial app to read full posts, comements and news.