Pricing is the home of heated debates. But Behavioral Economics tells us that our choices are not always rational. So, seemingly irrational pricing strategies can yield the best results. We'll cover five of those strategies. In particular, we'll cover the effect of not publishing your price - but instead saying "call for quote." You'll see that results in people assuming you're more expensive than reality.

1. Five Ways to Win the Pricing Wars
Using Mystical Forces
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2. In Kind
Advocate
Sponsors
SUPPORTERS

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“… we are pawns in a game whose forces we largely fail to
comprehend. We usually think of ourselves as sitting in the
driver’s seat, with ultimate control over the decisions we make
and the direction our life takes; but, alas, this perception has
more to do with our desires – with how we want to view
ourselves – than with reality.” Dan Ariely, Predictably Irrational

5. THE POWER OF ANCHORING
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0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
October November December January
Online Newsletter Subscription Conversion Rat
Monthly 1 Year 2 Year

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0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
2.00%
October November December January February March
Online Newsletter Subscription Conversion Rate
Monthly 1 Year 2 Year

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Why does this work?
Anchoring

11. THE POWER OF COMPARISON
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Subscriptions:
Welcome to
The Economist Subscription Centre
Pick the type of subscription you want to buy or renew.
□ Economist.com subscription – US $59.00
One-year subscription to Economist.com.
Includes online access to all articles from The Economist since 1997.
□ Print subscription – US $125.00
One-year subscription to the print edition of The Economist.
□ Print & web subscription – US $125.00
One-year subscription to the print edition of The Economist and
online access to all articles from The Economist since 1997.
16%
84%
0%

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Subscriptions:
Welcome to
The Economist Subscription Centre
Pick the type of subscription you want to buy or renew.
□ Economist.com subscription – US $59.00
One-year subscription to Economist.com.
Includes online access to all articles from The Economist since 1997.
□ Print subscription – US $125.00
One-year subscription to the print edition of The Economist.
□ Print & web subscription – US $125.00
One-year subscription to the print edition of The Economist and
online access to all articles from The Economist since 1997.
16%
84%
0%
68%
32%
0%

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Subscriptions:
Welcome to
The Economist Subscription Centre
Pick the type of subscription you want to buy or renew.
□ Economist.com subscription – US $59.00
One-year subscription to Economist.com.
Includes online access to all articles from The Economist since 1997.
□ Print subscription – US $125.00
One-year subscription to the print edition of The Economist.
□ Print & web subscription – US $125.00
One-year subscription to the print edition of The Economist and
online access to all articles from The Economist since 1997.
16%
84%
0%

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18. DARE TO BE ODD
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Which is More Compelling?
$400 $399

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It’s not about the threshold
$400 $399

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It’s about precision
$400 $399

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Round Number Seem Arbitrary
Non-round number seem precise
Professors:
Chris Janiszewski
Dan Uy

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Odd numbers work better
$400 $399
$391
$397

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vs
vs
Which Offer is More Compelling?
39% 61%
50% 50%

25. THE COST OF “CALL FOR QUOTE”
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You are investigating purchasing a monthly software subscription you need for your job.
Your boss asked you to investigate different software options and report back on what you find.
You found three options that will meet your needs.
Basic
$299 /mo
Pro
$599 /mo
The Plan
$499 /mo
Call Us for
Quote

28. 13.00%
12.00%
12.00%
14.00%
35.00%
14.00%
63.00%
How Much is Company C?
Less than $299/mo
$299/mo
$499/mo
$599/mo
$599/mo to $699/mo
More than $700/mo
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63%
49% Believe Company C is higher than the highest published price

29. FREE VS REALLY REALLY REALLY CHEAP
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Which One Would You Buy?
15 ₵ 1 ₵
73% 27%

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Which One Would You Buy?
14 ₵ FREE
31% 69%

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Who Are You Most Likely to Sell Chocolate to?
14 ₵ FREE
31% 69%

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7%

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7% 67%

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“… we are pawns in a game whose forces we largely fail to
comprehend. We usually think of ourselves as sitting in the
driver’s seat, with ultimate control over the decisions we make
and the direction our life takes; but, alas, this perception has
more to do with our desires – with how we want to view
ourselves – than with reality.” Dan Ariely, Predictably Irrational

40. QUESTIONS
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41. In Kind
Advocate
Sponsors
SUPPORTERS

42. ALLIES4ME INBOUND MARKETING
Craig Andrews, Principal Ally
allies4me
Craig.Andrews@allies4me.com
+1.512.333.1533
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Don’t Anchor Too High