I design pricing and options that influence people’s decisions.
Because how you design choices, you design decisions and behaviors.
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.
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…
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.
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.
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
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
Learn to increase your revenue by designing your pricing with behavioral psychology.