5 Pricing Tactics You Always Fall For | Blueperks

In this article, we try to shed some light at some pricing tactics that we encounter on a daily basis, so you could make smarter choices as a consumer.

For entrepreneurs struggling with pricing, this will be a handy guide to avoiding some tragic/costly mistakes as well as getting ideas to test on your own business.

Let’s get started.

1. “USELESS” PRICING

Dan Ariely came across this subscription offer from The Economist. It became a famous example in his book Predictably Irrational

There were 3 subscription plans. Which plan would u pick?

  1. Web-only subscription for $59
  2. Print-only subscription for $125
  3. Web & Print subscription for $125

It is obvious that the 2nd option is useless. True enough, he conducted a study with 100 MIT students, no one chose the 2nd option. (I’m sure you didn’t too)

He removed it and gave the subscription offer to another 100 MIT students. The picture below shows the change in subscription rate after the 2nd option was removed.

Read complete article here:

5 Pricing Tactics You Always Fall For.