Pricing Psychology is a strategy that uses pricing to influence a consumers spending behaviour. Pricing can be used as a marketing strategy or as a way to increase quality perception.

It can be part of a brands core ethos or it can fluctuate to keep transient consumers interested. Price is far more than a simple equation of [Cost+Profit = Price], especially when it comes to psychological pricing. The wrong price positioning can have an incredible impact on your clients buying behaviour and decisions.

Psychological pricing uses simple perception changes that go unnoticed by the brain and one of the most well known strategies is left digit pricing, where you take a whole amount and price it down by a penny, so it becomes £899.99 instead of £900, this is so common that it’s used everywhere, most consumers are not fooled by it anymore.