Learn pricing strategies—from charm pricing to price anchoring—that nudge customers toward higher-value purchases.
Price Smarter—Not Just Higher
Pricing isn’t just math—it’s psychology. Used well, it subtly steers customers toward your most profitable options without feeling pushy.
1. Charm Pricing (The “.99” Magic)
Ending prices with .99 or .95 (like $19.99 instead of $20.00) feels significantly cheaper to buyers—even if they know it isn’t. Split-test charm pricing for items priced under $100 and track conversion impact through your POS.
2. Tiered Anchoring
Display three options—Basic, Popular, Premium. The middle “Popular” tier looks like a value ladder compared to the premium model. Position margins strategically when the premium sets the anchor.
3. Bundles with a Sense of Savings
Show individual and bundled prices (e.g., “Buy 3 for $27 vs. $12 individually”). Customers feel like they’re getting a deal—and you can sell more units at healthy margins.
4. Limited-Time Price Incentives
Flash something like, “Today only: 15% off!” Set an expiration timer on your POS checkout. Urgency drives faster decisions.
5. Show Relative Savings
“Save $10!”, “20% less than usual”, or “Buy 2, get 1 50% off”. Display savings based on customer purchase price tracked via your POS for added trust.
6. Use Price Decoys
Add a higher-priced, minimally valuable option to make the premium product seem like a smart step up—encourage a “you’re getting more for less” mindset.
Final thoughts
When pricing works with psychology, shoppers feel smart—and so do you. Add a POS to test charm pricing, bundles, and urgency offers—and watch your revenue climb.