Pricing can feel tricky. You don’t want to price too high and scare people off, but you also don’t want to price too low and undervalue what you offer. The truth is, pricing is more than just numbers – it’s all about psychology.
The right price can make your offer feel like a no-brainer, while the wrong one can leave potential buyers hesitating. But don’t worry…you don’t need to be a pricing expert to get this right. By understanding how people think about price, you can create offers that are irresistible.
Let’s dive into simple, proven pricing strategies that help you sell more – without feeling pushy or salesy.
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The Power of Perceived Value
People don’t buy based on price alone. They buy based on the value they perceive.
- If something feels valuable, they’ll pay more.
- If something feels cheap, they’ll assume it’s low quality.
In fact, I want you to think about something for a second, especially if you’ve had your online business for a while. When you see someone you don’t know giving away something for free, do you automatically assume that it’s low quality? Do you think it won’t help you? If you do, that’s because it was free. If they had been selling the same product, there’s a chance you would have wanted it and thought it was worth that price. But because it was free, you automatically assumed it wasn’t very good.
How to Increase Perceived Value:
- Highlight the transformation: Show how your offer improves their life or business.
- Use testimonials or social proof: People trust what others say more than what you say.
- Include bonuses: These make your offer feel more valuable without much extra work for you.
- Compare to something pricier: “This $97 course gives you the same strategies as a $1,000 coaching program!”
Pro Tip: If people aren’t buying, it’s often because they don’t see the value, not because the price is too high. Focus on why your offer is worth it, and the price will feel like a deal.
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Charm Pricing vs. Prestige Pricing
Ever noticed how products are priced at $9.99 instead of $10? That’s charm pricing, and it works because our brains see $9.99 as closer to $9 than $10.Use charm pricing for:
- Low-ticket offers (ex., $17, $37, $47)
- Impulse buys (things people grab without much thought)
On the flip side, prestige pricing (e.g., $100 instead of $99) works better for:
- High-end products or coaching (it feels premium)
- Luxury or professional services (round numbers feel more sophisticated)
Pro Tip: If you’re selling digital products, coaching, or premium services, test using whole numbers instead of charm pricing to position your offer as more valuable.
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Price Anchoring: Make Your Offer Look Like a Steal
Price anchoring is when you show a higher price first so your actual price seems like a bargain.Example:
“This course is normally $497, but today it’s just $97!”
Why does this work? Because our brains compare prices rather than evaluating them in isolation. If we see $497 first, then $97 feels like an amazing deal.
Ways to Use Price Anchoring:
- Show the original price vs. the discounted price
- Compare your offer to a more expensive alternative
- Offer tiered pricing (more on this below)
Pro Tip: If you use price anchoring, make sure the “original” price is realistic. You don’t want people to feel like they’re being tricked.
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The Magic of Tiered Pricing
Ever seen a pricing page with multiple options? That’s tiered pricing, and it’s brilliant.Example:
- Basic Plan – $97 (Just the course)
- Pro Plan – $197 (Course + templates + group Q&A)
- VIP Plan – $497 (Course + templates + Q&A + 1:1 coaching)
Most people will choose the middle option because they don’t want the cheapest, but they don’t want to splurge either.
Why it works:
- It gives customers a sense of control over their purchase.
- It makes the middle or higher-tier option feel like the best value.
- It helps you increase your average order value without pressure selling.
Pro Tip: Make your middle option the most attractive by giving it the best value-for-money ratio.
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The Power of Bundling
Bundling means packaging multiple products together for one price.Example:
- $27 for one template OR $47 for a bundle of five templates.
- $97 for a single workshop OR $197 for a course + workbooks + coaching session.
Most people will choose the bundle because it feels like they’re getting way more for their money.
Pro Tip: If you have multiple products, offer a bundle to increase sales and raise your average purchase amount.
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The Scarcity & Urgency Effect
People don’t like missing out, which is why scarcity (limited quantity) and urgency (limited time) drive action.Examples:
- Limited Time: “Enroll before Friday to get this price!”
- Limited Spots: “Only 10 coaching spots available!”
- Exclusive Bonuses: “Buy today and get a free bonus!”
Scarcity works because people fear missing out (FOMO)…but it only works if it’s real. Never fake urgency; instead, use genuine deadlines or limited spots. If you do, you won’t get away with it more than once. People will catch on, and wont’ trust you anymore.
Pro Tip: Add a countdown timer on sales pages to increase conversions (but only if there’s a real deadline!).
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Offer Payment Plans for Higher-Ticket Sales
If you sell something over $200, offering a payment plan can dramatically boost conversions.Example:
- One-time payment: $497
- 3 monthly payments of $177
Some people can’t afford the full price upfront, but they can handle smaller payments. Adding a payment plan makes your offer more accessible without lowering its value.
Pro Tip: Price payment plans slightly higher (e.g., $197 upfront or 3 payments of $77) to encourage one-time payments while still giving options.
Final Thoughts: Price Smart, Sell More
Pricing is more than just numbers. It’s about how people perceive your offer.
Recap of Key Pricing Psychology Strategies:
- Increase perceived value so people feel like they’re getting a great deal.
- Use charm pricing ($47) for low-ticket offers and prestige pricing ($500) for high-end ones.
- Anchor your price by showing a higher price first.
- Offer tiered pricing to guide buyers to the best option.
- Bundle products to increase sales and average order value.
- Create urgency and scarcity to drive action.
- Offer payment plans for higher-priced offers.
You don’t have to use all these strategies at once. Start with one or two, test them, and see what works for your audience.
Now, look at your current pricing and see where you can apply these tactics. Small changes can lead to big increases in sales!
