I just finished taking a course in price psychology by Andrew Luttrell, Ph.D. If you are interested in taking the course yourself, then click here. If not, I can save you hours of time by summarizing the key topics for you.
Should you price the ending at 99 or 95?
If the price of your product is under $50, use .99
If the price of your product is over $50, use .95.
Don’t ever use commas when pricing.
Don’t use decimals for prices over $99.
If you sell luxury goods, use whole numbers. If you sell utilities, don’t use whole numbers.
Use the color red in the price to help increase sales.
When presenting price options, always start with the highest price first, then work your way down.
When you have an anchor price, use a whole number so it’s easy to subtract and the customer can easily know how much they are saving.
Also, decrease the left digit of your price to make it seem like a bigger discount compared to the anchor price.
Decrease the left digit of your price to make it seem like a bigger discount compared to the anchor price.
This is a study on price decoy:
Below are ideas for our pricing models that we can test.: