Psychological Pricing: 7 Practical Tips You Can Use Today to Boost Sales
Pricing. It’s one of the most critical decisions your business will ever make, yet most people approach it like a finger-in-the-air guessing game. But what if you could tap into psychological principles to not just set prices, but make your customers feel they’re getting a great deal? That’s what this episode of The Intuitive Customer is all about.
Join Colin Shaw and Professor Ryan Hamilton as they break down the fascinating—and sometimes hilarious—world of psychological pricing. From late-night infomercials and $400 bath towels to popcorn buckets and outrageous anchoring techniques, we explore why pricing is more than numbers on a tag—it’s a story you tell your customers.
Along the way, Ryan reveals the secrets behind charm pricing, scarcity cues, and the “decoy effect,” while Colin shares how early mistakes taught him the importance of understanding customer perception. (Spoiler alert: guesswork is not a strategy.)
If you want to understand the psychology behind pricing—and how to use it to improve your bottom line—you’ll love this episode. But be warned: you might never look at a price tag the same way again.
Best Quote from the Episode: "The price isn’t just a number; it’s a conversation you’re having with your customer. And if you’re not telling the right story, someone else will." — Professor Ryan Hamilton
Key Takeaways (But You’ll Have to Tune In for the Full Insights!):
- Anchoring: The "Big Daddy" of Pricing Why giving customers a frame of reference can make your prices seem more attractive.
- Charm Pricing Still Works (But It’s Changing) $0.99 vs. $1.00—what’s really happening in the customer’s mind?
- The Decoy Effect: Guide Them to the Right Choice How medium popcorns make large popcorns irresistible.
- Scarcity and Social Proof: The FOMO Effect The subtle art of using “only 2 left!” without annoying your customers.
- Price Elasticity: Know Who You’re Selling To Some customers care deeply about price changes—others don’t. Do you know the difference?
- Signpost Items: First Impressions Matter Why your pricing on milk, batteries, or even AA batteries can shape brand perception.
- Price Fairness: Handle with Care Overcharging can ruin trust, even if it makes short-term financial sense.
Why You Should Listen: Whether you’re pricing consulting services, running a retail store, or managing a SaaS product, this episode is packed with actionable insights that will make you rethink how you price—and how your customers perceive your value. Plus, it’s full of funny stories, practical advice, and a healthy dose of British-American banter.
Don’t just set prices. Shape perceptions.
About the Hosts:
Colin Shaw is a LinkedIn 'Top Voice' with a massive 284,000 followers and 86,000 subscribers to his 'Why Customers Buy' newsletter. Shaw is named one of the world's 'Top 150 Business Influencers' by LinkedIn. His company, Beyond Philosophy LLC, has been selected four times by the Financial Times as a top management consultancy. Shaw is co-host of the top 1.5% podcast 'The Intuitive Customer'—with over 600,000 downloads—and author of eight best-sellers on customer experience, Shaw is a sought-after keynote speaker. Follow Colin on LinkedIn.
Ryan Hamilton is a Professor of Marketing at Emory University's Goizueta Business School and co-author of 'The Intuitive Customer' book. An award-winning teacher and researcher in consumer psychology, he has been named one of Poets & Quants' "World’s Best 40 B-School Profs Under 40." His research focuses on how brands, prices, and choice architecture influence shopper decision-making, and his findings have been published in top academic journals and covered by major media outlets like The New York Times and CNN. His work highlights how psychology can help firms better understand and serve their customers. Ryan has a new book launch in June 2025 called “The Growth Dilemma: Managing Your Brand When Different Customers Want Different Things” Harvard Business Press Follow Ryan on LinkedIn.
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