{"id":3371,"date":"2026-05-06T11:00:04","date_gmt":"2026-05-06T11:00:04","guid":{"rendered":"http:\/\/fliegewiese.org\/?p=3371"},"modified":"2026-05-07T11:29:59","modified_gmt":"2026-05-07T11:29:59","slug":"5-science-backed-pricing-tips-from-the-u-k-s-top-marketing-podcast","status":"publish","type":"post","link":"http:\/\/fliegewiese.org\/index.php\/2026\/05\/06\/5-science-backed-pricing-tips-from-the-u-k-s-top-marketing-podcast\/","title":{"rendered":"5 science-backed pricing tips from the U.K.\u2019s top marketing podcast"},"content":{"rendered":"
In 2007<\/a>, Coulter and Coulter showed two advertisements to two random groups of customers. Each advertised \u00a310 discounts on flights to Turkey. One listed the tickets at \u00a3188. The other showed a higher price: \u00a3233. Customers found that the cheaper tickets felt like a worse <\/em>value. Why? Researchers found that people more easily differentiate smaller numbers. The difference between 4 and 3 seems more salient than 9 and 8. So, customers were more likely to buy when the prices ended in smaller numbers \u00a3244 to \u00a3233), compared to those ending in higher digits (\u00a3199 to \u00a3188).<\/p>\n The takeaway is fairly simple. Next time you run a discount, make the sale price less than five. That\u2019s just one piece of pricing advice that we\u2019ve discussed on my podcast Nudge<\/a>, the U.K.\u2019s number one marketing podcast. Here are four more psychology-backed tips for pricing your products.<\/p>\n Table of Contents<\/strong><\/p>\n <\/a> <\/p>\n Check out the two ads for a budget lunch from Huel. One shows the total cost of 21 meals (\u00a378.96). The other breaks down the price per lunch ($3.76). Researchers found that breaking down the price per unit performed better with customers. Showing a lower price led shoppers to perceive that they were getting a better deal.<\/p>\n Richard Shotton and Michael Aaron Flicker tested ads very similar to this for their fantastic book<\/a> Hacking the Human Mind<\/em>.<\/p>\n In a study, 282 shoppers were divided into groups. Half were shown Sierra Nevada Pale Ale priced at $18.99 for 12 bottles. The other group was told the price per unit \u2014 $1.58 per bottle. Among those shown the per-bottle price, 28.6% said it was good or very good value (more than double the 13.7% who only saw the total price).<\/p>\n Framing the cost per unit made the purchase feel more reasonable and affordable.<\/p>\n <\/a> <\/p>\n Companies looking to upsell their audience need to pick the right framing. Take this 2019<\/a> experiment from David Hardisty at the University of British Columbia. Hardisty tested different pricing packages for New York Times subscriptions.<\/p>\n Group A saw two plans:<\/p>\n Group B saw the same products described in a different way. The first plan showed a \u201cWeb + App\u201d subscription for $9.99\/month. The second plan, labeled \u201c+ All the Extras,\u201d was available for an additional $7\/month.<\/p>\n Same total price. Different framing. But, Group B chose the premium plan two times as often. Why? Because $7 extra feels easier to justify than $17 total.<\/p>\n Want people to go premium? Don\u2019t show them the full price. Use differential price framing and just tell them the surcharge.<\/p>\n I went viral on LinkedIn<\/a> for sharing this image about chicken soup. One showed a bowl priced at $7.99. The second ad showed a breakdown of all the ingredients, how much they cost, and the profit margin before the final price. Which sign would be better for sales? The post attracted a lot of attention because the results were surprising.<\/p>\n My post was based on a 2020 study from Harvard<\/a> designed to test the effects of showing a product\u2019s cost. The initial experiment ran in a Harvard canteen, where researchers tracked actual purchases after students viewed the comparisons.<\/p>\n When the costs were made visible, soup sales increased by 21%.<\/p>\n The takeaway: Price transparency wins. Customers are more willing to pay when they know what goes into making a product.<\/p>\n <\/a> <\/p>\n Imagine handing someone the equivalent of $1 and offering them a choice between two packs of gum. Same flavour. Same brand. Same price.<\/p>\n What happens? Decision paralysis.<\/p>\n
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Break down your price.<\/h2>\n
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<\/p>\nShow the price difference.<\/em><\/h2>\n
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<\/p>\nBe transparent with your costs.<\/h2>\n
<\/p>\nMake the difference visible.<\/h2>\n