The Psychology Of Pricing: Part 1 - RD264

<h2>Use these psychological tactics to change how people see prices.</h2> <p>I recently read a very in-depth article by <a href= "https://www.nickkolenda.com/psychological-pricing-strategies" target="_blank" rel="noopener">Nick Kolenda</a> on the psychology of pricing. I was so fascinated by what he revealed that I immediately changed some of the ways I display prices for myself and the things I design for my clients.</p> <p class="p1">I thought I would save you time by summarizing the 42 research-proven psychological tactics in Nick's article in a podcast series. I’m sure you’ll find it very useful in your design business. All studies I reference are linked to in Nick's article, in case you're interested.</p> <p class="p1">As Nick puts it, At the end of the day, price is merely a perception. Nothing more. Nothing less. In fact, you can change that perception of how people interpret a price simply by changing the visual traits of the numeral.</p> <p class="p1">It’s a given. The number 5 is greater than 4. And 6 is greater than 5. But using these psychological pricing techniques, you can actually make prices seem lower - without reducing the actual price.</p> <p class="p1">According to a 2002 study, most people don’t remember exact prices. Rather, they remember general prices.</p> <p class="p1">Have you ever looked at a price, and later when asked about it, only have a general idea of how much it was?</p> <p class="p1">When I get home from the grocery store and my wife asked me how much it cost. I don’t always remember the exact price. Was it $131 and change, or was it $138 and change? So I might tell her it cost "$130 something dollars."</p> <p class="p1">Because humans have such a hazy memory regarding prices, we can use certain psychological tactics to influence people into seeing smaller prices than they realize. Let me get right down to the actual tactics.</p> <h2 class="p1">Tactic 1: Reduce the Left Digit By One</h2> <p class="p1">You’re probably already familiar with this tactic. Reducing the left digit by