Edited excerpt from 5 Psychological Hacks That Will Make Your Pricing Page Irresistible by Neil Patel:
1. Place a third and mispriced option to nudge customers toward the preferred purchase. This is the decoy effect, which occurs when customers are presented with a third option (a decoy) that causes them to choose the higher priced of the two original options. For this option, make sure that the value is significantly lower than the most expensive option, but the price is almost as high. Considering the middle option seems absurd. For just a few dollars more, the customer could have the highest option that provides far more value.
2. Put your best option in the middle. People prefer the middle option, regardless of what type of person they are, and regardless of what items are available to choose from.
3. Show the value of pricing options, not just the price. The framing effect states that people respond in different ways to a choice, depending on how it is framed — as a loss or as a gain. By showing customers how much they are saving, you can frame a purchase in a more positive light, even though the cost itself is higher.
4. Point out which option is the most popular. People are more likely to choose what others have chosen. This is called groupthink, or the bandwagon effect. For customers who may not be familiar with the various features of each program, selecting the most popular choice make sense.
5. Make your prices relatively consistent with each other. When making decisions, people tend to focus on the facts before them, ignoring facts that are generally true about that given situation. This is known as the base rate fallacy. If you want your pricing to appear fair, then you should allow each of the pricing options to be relatively the same, so you don’t cause the customer to think more broadly about the pricing. Your goal is to keep your customer’s thinking on the price within a certain range — the range that you define.
(1) Note the conflict between the decoy effect — introducing a pricing outlier to make the others look more attractive — and base rate neglect — ensuring your prices are consistent with each other. Which should take precedence?
(2) Here’s our pricing page for Seeking Alpha PRO. How should we improve it?