Decoy pricing: from Apple to Starbucks, this powerful pricing strategy leverages customer psychology to drive sales.
It might seem counterintuitive, but offering a higher-priced product alongside your target product can actually increase sales of your target product.
This strategy works by creating the perception that your target product is a better value compared to the higher-priced option.
Imagine you’re shopping for wine and see two options: a $10 bottle and a $30 bottle. You might be hesitant to choose the $30 bottle, but then a $50 bottle is added as a decoy.
Suddenly, the $30 bottle seems like a reasonable and affordable option compared to the pricey $50 bottle.
This is the power of decoy pricing – it influences our perception of value and ultimately drives sales and revenue.
So, next time you’re considering your pricing strategy, think about how a decoy option could help influence your customers’ decisions and ultimately drive more sales and revenue for your business.
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