Psychological Pricing: 7 Practical Tips You Can Use Today to Boost Sales

Pricing. It’s one of the most critical decisions your business will ever make, yet most people approach it like a finger-in-the-air guessing game. But what if you could tap into psychological principles to not just set prices, but make your customers feel they’re getting a great deal? That’s what this episode of The Intuitive Customer is all about.

Join Colin Shaw and Professor Ryan Hamilton as they break down the fascinating—and sometimes hilarious—world of psychological pricing. From late-night infomercials and $400 bath towels to popcorn buckets and outrageous anchoring techniques, we explore why pricing is more than numbers on a tag—it’s a story you tell your customers.

Along the way, Ryan reveals the secrets behind charm pricing, scarcity cues, and the “decoy effect,” while Colin shares how early mistakes taught him the importance of understanding customer perception. (Spoiler alert: guesswork is not a strategy.)

If you want to understand the psychology behind pricing—and how to use it to improve your bottom line—you’ll love this episode. But be warned: you might never look at a price tag the same way again.

Best Quote from the Episode: "The price isn’t just a number; it’s a conversation you’re having with your customer. And if you’re not telling the right story, someone else will." — Professor Ryan Hamilton

Key Takeaways (But You’ll Have to Tune In for the Full Insights!):

1. Anchoring: The "Big Daddy" of Pricing Why giving customers a frame of reference can make your prices seem more attractive.

2. Charm Pricing Still Works (But It’s Changing) $0.99 vs. $1.00—what’s really happening in the customer’s mind?

3. The Decoy Effect: Guide Them to the Right Choice How medium popcorns make large popcorns irresistible.

4. Scarcity and Social Proof: The FOMO Effect The subtle art of using “only 2 left!” without annoying your customers.

5. Price Elasticity: Know Who You’re Selling To Some customers care deeply about price changes—others don’t. Do you know the difference?

6. Signpost Items: First Impressions Matter Why your pricing on milk, batteries, or even AA batteries can shape brand perception.

7. Price Fairness: Handle with Care Overcharging can ruin trust, even if it makes short-term financial sense.

Why You Should Listen: Whether you’re pricing con