6 Types of Psychological Pricing

• Charm pricing and odd-even pricing: It removes one cent from the rounded dollar price of an item to trick the brain into thinking it costs less.
• Slashing the MSRP: Some businesses sell right at the manufacturer’s suggested retail price, but others show it next to the lower price they’re selling the item for.
• Artificial time constraintsto create a sense of urgency: Only a few hours left!
• Innumeracy: A box of pasta might be on sale for 50% off if you buy 2.
• Price appearance: $12 feels cheaper than $12.00 because the number itself isn’t as long.
• Consumers like flat rates, even when they cost more.

Pricing can be used as a marketing strategy or as a way to increase perceptions of quality. Sometimes it’s baked directly into a brand’s ethos.

It’s so much more than a simple calculation—pricing, especially the practice of psychological pricing, can have a real im...