How to Use Psychological Pricing to Sell More at Better Prices

When I help my clients in the automotive industry incorporate psychological pricing I often get the following questions: What is psychological pricing?”, “How do you use it when negotiating with professional buying centers?”, or “This sounds evil. Should we really use this?”. These are all good questions to have. In this article, I’m hoping to help answer these common questions and share some psychological pricing techniques with you that you can use to increase your chances of selling more at better prices.

What is psychological pricing?

Psychological pricing refers to pricing techniques that affect how customers attribute value to your offer, and how they perceive your price. And they do so without having to lower your price or offer more value. How is this possible? An example of psychological pricing is the classic price anchoring effect. A price anchor is a high price that makes another price look small in comparison. To illustrate this,…