Hey there, curiosity cultivator,
Ever wondered why £2.99 feels like a bargain but £3.00 feels way more expensive?
A new report created by Acuity Pricing in collaboration with behavioural scientist Richard Shotton reveals the key principles behind the ‘psychology of pricing’, giving you the answer to the above question and much more.
To make life easier, we’ve summarised the 10 science-backed ways to make your prices feel strangely irresistible. You can also download the full report by clicking on the green button below.
HOW TO SET SMARTER PRICES
1. Present Bias
We care more about the present than about the future. Use this to your advantage by offering instalments or delaying full payment (e.g. “Buy now, pay later”) to reduce resistance.
2. Charm Pricing
£2.99 still beats £3.00 even in 2025. Use prices ending in .99 to boost conversions or subtly raise prices.
3. Precise Pricing
£20.12 feels more authentic than £20. Use specific figures to suggest thoughtfulness and avoid suspicion of mark-ups.
HOW TO REDUCE PRICE SENSITIVITY
4. Price Relativity
People compare before they calculate. Position your product next to a higher-priced item or shift its reference category.
5. Extremeness Aversion
Three options beat two. Add a “super-premium” tier to nudge customers toward your profitable middle.
6. The Order Effect
First impressions count, even in price lists. List from highest to lowest to anchor perception upward.
7. The Decoy Effect
A bad option can make another look great. Introduce a “decoy” product with fewer features at the same price as your target.
8. Unit Reframing
Smaller numbers feel better. Break down costs by day, unit, or serving (e.g. “only 82p/day”).
9. Differential Framing
“ +£7” sounds better than “£22 total”. Show the extra cost rather than the full price when upselling.
10. Price = Quality (In Our Minds)
Lower prices can literally taste worse. Be cautious with deep discounts as they may reduce perceived quality.
Remember, we are not rational beings. Just like you, your customers’ brains take shortcuts. These 10 tricks help you guide them cleverly toward your best pricing outcomes.
Here’s to the power of behavioural science. Now go forth and price like a genius.
Big love,
Chris & the 42courses team x
