I design pricing and options that influence people’s decisions.
Because how you design choices, you design decisions and behaviors.
- Behavioral psychology
- Decision science
- Cognitive biases
- Nudges
I publish a few case studies every month. I choose a product/service in each case study. I explain how they will increase their revenues with their pricing strategies.
It’s free.
Great news! 🎉
— Denizcan Sanlav | Irrational Pricing (@sanlavdenizcan) August 1, 2023
I received a praise-filled email from a professor about my irrational pricing case studies. 😊
He wanted to use my case studies in his teaching.
That's fantastic! pic.twitter.com/NFot4wsuVA
Makers love it.
A big thank you to @sanlavdenizcan for doing this case study using TweetAI .com 🙏
— Peter Mick (@ThePeterMick) May 26, 2023
When I read it I was like "Wow!" so many eye-openers in there... 😍
Needless to say, I'll be making all the changes soon 🚀#buildinpublic https://t.co/PS1lTSxDj9
Lots of great nuggets of (pricing) wisdom here! Do check it out if you want to learn more about effective pricing.
— Faahim (@faahim01) June 28, 2023
This also illustrates how good of a deal RefinedTweets is right now 😅
I'm going to implement some of this into RefinedTweets soon. :) https://t.co/GfnTTzc6Wg
Yes, except of asking how much to pay. They will say the price as low as possible. But if solution really fits them, they could pay x2/x3 more. So I’d better stick to competitors prices analysis, and then experiment with making higher/lower price.
— Konstantin Filatov (@thinkcly) June 13, 2023
Check @sanlavdenizcan. A lot of…
I will suggest you check out @sanlavdenizcan he has some pretty great guides and tweets that will help you craft a really good pricing page.
— Ayush K.@ WritingAid (@_Ayu5h) July 27, 2023
Saves lives 🥳 https://t.co/Ompf8u0Eb9
— Muhammet • Tweetradar.io (@muhammetcalis01) September 11, 2023
Many thanks to @sanlavdenizcan for your invaluable suggestions.
— Chetan Mahajan (@_chetanmahajan) May 28, 2023
I think @sanlavdenizcan is your man for this question. He has very deep insights about the psychology and practice or pricing.
— Eli Finer (@finereli) May 20, 2023
thanks a lot for this 😍
— 🧞♂️Martin Donadieu in France 🇫🇷 (@martindonadieu) May 13, 2023
Welcome to the Pricing Wizardry!
Which package would you choose in a pricing as below? Choose the best deal for you. I will predict your choice.
( You’re not buying anything. It’s just a guessing simulation. Just choose the best deal for you in a pricing like this.)
Show the results.
How you design options, you design decisions and behaviors.
It’s very likely that you are buying pack 2 too. And about 70-80% of people prefer the 2nd package this pricing.
Because I carefully designed this pricing hypothesis for people to choose package 2.
We behaviorally tend to choose pack 2 in a pricing design like this. A ridiculously advantageous (profitable) deal in this pricing design is package 2.
Only a small minority buys pack 1 and pack 3. (There are reasons for that.)
With scientifically proven theories such as Libertian paternalism, nudging, cognitive biases, people’s decisions and behaviors can be influenced.
Just like I influenced your decision for pack 2.
Package 1
Package 2
Package 3
Here's how decisions are influenced using behavioral psychology
With its price and pack features, pack 1 is an anchor that makes pack 2 feel like a profitable deal.
→Cognitive Biases; Anchoring bias, Framing effect
$59 is another anchor. It makes the package feel more advantageous than usual by offering an incentive.
→Cognitive Biases; Anchoring bias, Incentives
“Only first 20” creates scarcity. This triggers loss aversion. Procrastination is avoided and creates urgency to buy right away.
→Cognitive Biases; Scarcity, Urgency, FOMO
Pack 3 is priced at $99, making the price of pack 2 seem very reasonable (because the features in pack 2 are more than enough)
→Cognitive Biases; Confirmation bias
If there was classic/linear pricing?
This is what we see in almost every product and SaaS.
Probably yours too.
Most products make pricing classic/linear. That leaves potential customers free to choose.
For example this.
The package is not 1 anchor. And there isn’t much reason for potential customers to choose pack 2.
Buying rate of users will be almost much like this.
See its impact on revenue
Here's the impact on revenue
Classic Pricing
Irrational Pricing
Buying Rates of Users
1045
1365
990
MRR of packages by %
580
2730
990
3400
Total MRR for 100 Paid Users
4300
40.800
ARR for 100 Paid Users
51.600
+26.5%
Here's the impact on revenue
Buying Rates of Users
Classic Pricing
Behavioral Pricing
MRR of packages by %
Classic Pricing
1045
1365
990
Behavioral Pricing
580
2730
990
Total MRR for 100 Paid Users
Classic Pricing
3400
Behavioral Pricing
4300
ARR for 100 Paid Users
Classic Pricing
40.800
Behavioral Pricing
51.600
+26.5%
Don't leave money on the table
Learn to increase your revenue by designing your pricing with behavioral psychology.
It’s free.