1 Psychological pricing

Psychological pricing is the practice of using prices that appeal to the emotions and cognitive biases of customers, rather than to their rational calculations. For example, you can use charm pricing, which is setting prices just below a round number, such as $9.99 instead of $10. This can make customers feel that they are getting a bargain, even if the difference is minimal. You can also use prestige pricing, which is setting prices higher than the average, such as $99 instead of $75. This can make customers associate your products with higher quality, status, and value, even if the features are similar.

2 Dynamic pricing

Dynamic pricing is the practice of changing prices according to the fluctuations of demand, supply, and competition in the market. For example, you can use surge pricing, which is increasing prices when the demand is high, such as during peak hours, holidays, or special events. This can help you maximize your revenue, manage your inventory, and discourage customers who are not willing to pay more. You can also use discount pricing, which is lowering prices when the demand is low, such as during off-peak hours, seasons, or promotions. This can help you attract more customers, clear excess stock, and increase customer loyalty.

3 Value-based pricing

Value-based pricing is the practice of setting prices based on the perceived value and benefits that your products provide to your customers, rather than on the cost of production or the market average. For example, you can use bundle pricing, which is offering a set of complementary products or services for a lower price than if they were sold separately, such as a meal deal or a subscription plan. This can make customers feel that they are getting more value for their money, increase their satisfaction, and encourage repeat purchases. You can also use tiered pricing, which is offering different levels of products or services for different prices, such as a basic, standard, or premium option. This can make customers feel that they have more choices, cater to their different needs and preferences, and increase your profit margins.

4 Anchoring and framing

Anchoring and framing are the techniques of using reference points and contexts to influence how customers perceive and evaluate your prices. For example, you can use price anchoring, which is showing a higher price before a lower price, such as a regular price and a sale price, or a competitor's price and your price. This can make customers focus on the difference and feel that they are saving money, rather than on the absolute amount. You can also use price framing, which is presenting your prices in a way that highlights the positive aspects, such as per unit, per day, or per month. This can make customers think that your prices are lower, more affordable, or more convenient, than if you showed the total amount.

5 Decoy pricing

Decoy pricing is the technique of using a third option that is intentionally less attractive than the other two, to influence customers to choose the more expensive one. For example, you can use a decoy product, which is a product that has a higher price and fewer features than the other two, such as a small, medium, or large size. This can make customers avoid the decoy and opt for the large size, which has more value and benefits, rather than the small size, which has less cost and features. You can also use a decoy price, which is a price that is close to or equal to the higher price, but has fewer features or benefits, such as a standard or a premium membership. This can make customers avoid the decoy and choose the premium membership, which has more value and benefits, rather than the standard membership, which has less cost and features.