Real-world examples of psychological pricing strategy examples that actually work

The most common examples of psychological pricing strategy examples

When people talk about psychological pricing, they’re usually pointing to a handful of patterns: prices ending in .99, “was/now” discounts, and those oddly specific \(47 or \)97 digital offers. But the best examples of psychological pricing strategy examples go much deeper than cheap tricks. They’re structured, tested, and baked into the business model.

Let’s walk through the major patterns you see every day—and why they still work in 2024.

Charm pricing: Why \(9.99 still beats \)10 in 2024

Charm pricing is the classic example of psychological pricing: setting prices just below a round number, like \(9.99 instead of \)10 or \(199 instead of \)200.

Retailers use this everywhere—Target, Walmart, Amazon, and your local grocery store. The logic is simple: our brains read from left to right, and we anchor on the first digit. \(9.99 feels meaningfully cheaper than \)10, even though the difference is a single cent.

A well-cited meta-analysis of price endings in marketing research has found that prices ending in 9 often increase demand compared with nearby prices that don’t use 9, even when the 9-ending price is slightly higher than an alternative. Academic work published through institutions like the University of Chicago and MIT has repeatedly shown that these tiny shifts can change perceived value and demand.

Real examples include:

• Fast fashion brands listing tops at \(19.99, \)29.99, and \(39.99 instead of clean \)20, \(30, \)40 tiers.
• Big-box retailers using \(4.99 and \)7.99 on end caps to make deals feel more “grab-and-go.”
• Digital products and courses priced at \(97 or \)297, not \(100 or \)300, to soften the psychological barrier.

If you’re looking for practical examples of psychological pricing strategy examples to test first, charm pricing is the easiest place to start. It’s low-risk, easy to implement across SKUs, and simple to A/B test in e‑commerce.

Price anchoring: The high price that makes the middle look safe

Anchoring is another powerful example of psychological pricing strategy. You show a higher reference price so your actual target price feels reasonable—even cheap—by comparison.

You see this constantly on:

• SaaS pricing pages with three or four tiers
• Restaurant menus with one very expensive entrée
• Retail “compare at” tags showing a manufacturer’s suggested retail price (MSRP)

A typical SaaS example:

• Basic: $19/month
• Pro (highlighted): $49/month
• Enterprise: “Contact us” or $199/month

The presence of the \(199 Enterprise plan makes \)49 feel like the sensible middle ground. The company doesn’t expect most buyers to choose Enterprise; it exists partly as an anchor.

Restaurants use a similar tactic. A \(65 steak on a menu makes the \)32 chicken dish feel more reasonable. Without that anchor, the $32 might feel steep.

Behavioral economics research, including work popularized by scholars at institutions such as Harvard and MIT, has shown that people rely heavily on the first number they see when forming judgments about value. Once you understand that, you start to see real examples of psychological pricing strategy examples on almost every pricing page and menu.

Decoy pricing: The “bad deal” that sells the good one

Decoy pricing is a more advanced example of psychological pricing strategy where a company intentionally offers a less attractive option to steer customers toward a more profitable one.

The classic real example comes from magazine subscription offers:

• Digital-only: $59
• Print-only: $125
• Print + digital: $125

Print-only and print + digital are priced the same. Almost everyone chooses the bundle, because it feels like a no-brainer. The print-only option is the decoy: it exists to make the bundle look superior.

You’ll see similar setups in 2024 on:

• Streaming services offering a low-priced but ad-heavy tier, a mid-tier ad-free plan, and a high-end 4K family plan that few actually need.
• Gyms offering a bare-bones membership that omits locker rooms or classes, next to a slightly pricier “all access” option.

The decoy is rarely intended to be popular. Its job is to reframe the value of the target plan. When you’re collecting examples of psychological pricing strategy examples, decoy pricing is one of the most subtle—but one of the most profitable when done well.

Odd, tiered, and charm price bands in e‑commerce

E‑commerce brands rely heavily on psychological pricing because online shoppers can compare prices in seconds. That forces companies to compete on perception, not just raw price.

Real examples include:

• Fashion retailers clustering prices at \(29, \)49, \(79, and \)129. These tiers make it easier for shoppers to self-select into a “budget,” “mid,” or “premium” category without overthinking every single item.
• Consumer electronics brands setting headphones at \(49.99, \)79.99, and $129.99. The middle option often carries the highest margin and is framed as “best value.”
• Amazon sellers using .97 or .88 endings to signal clearance or special deals.

These examples of psychological pricing strategy examples work by creating mental categories. Instead of evaluating whether a shirt is worth \(31 versus \)34, the shopper just decides whether they’re shopping in the \(30 range or the \)50 range. The decision becomes, “Am I a mid-range or premium buyer today?”

Scarcity, urgency, and FOMO: Psychological pricing in real time

Scarcity and urgency aren’t just marketing copy; they’re pricing strategies. You’ll see them in airline tickets, hotel bookings, and flash sales.

Real-world patterns:

• Airline sites showing “Only 2 seats left at this price.”
• Hotel platforms showing “4 people are viewing this room” and “Last room at this price.”
• E‑commerce flash sales with countdown timers: “Sale ends in 02:13:47.”

These tactics work because people are loss-averse. Behavioral research, including work by Daniel Kahneman and Amos Tversky often referenced in economics and psychology courses at universities like Princeton and Harvard, has shown that the pain of losing a deal feels stronger than the pleasure of getting a slightly better one later.

Scarcity doesn’t always change the numeric price, but it changes the perceived value of that price right now. That’s why scarcity and urgency belong on any list of real examples of psychological pricing strategy examples, especially in travel and event ticketing.

Bundle pricing: Making more feel cheaper

Bundle pricing is another example of psychological pricing strategy that quietly drives revenue. Instead of selling items individually, you combine them into a package that feels like a deal—even if the margin is higher for the seller.

You see this everywhere:

• Fast-food “meal deals” where burger, fries, and drink cost less as a combo than a la carte.
• Software suites bundling email, storage, and collaboration tools into one subscription.
• Streaming platforms offering “bundle and save” packages across music, video, and news.

Customers rarely calculate the exact per-unit savings. They respond to the concept of value: more stuff for not much more money. Done well, bundles can:

• Increase average order value
• Move slower inventory
• Anchor customers at a higher spending level by default

If you’re looking for practical examples of psychological pricing strategy examples to use in retail or SaaS, bundles are one of the most reliable levers.

Freemium, trials, and commitment: Pricing psychology in SaaS

Software and subscription businesses lean heavily on psychological pricing strategies that focus on commitment and switching costs.

Common patterns:

• Free trials that require a credit card upfront, banking on inertia and forgetfulness.
• Annual plans priced to look dramatically cheaper per month, e.g., “\(29 month-to-month or \)19/month billed annually.”
• Freemium tiers with just enough value to hook users, but key features locked behind a paid upgrade.

These are real examples of psychological pricing strategy examples where the goal isn’t just to win the first purchase; it’s to make canceling feel painful. Once a team has integrated a tool into their workflow, the perceived “cost” of leaving is high, even if the monthly fee is modest.

The pricing page is doing two jobs at once: signaling value and quietly nudging long-term commitment.

Prestige pricing: When higher prices help sales

Not all psychological pricing aims to look cheap. Sometimes, the strategy is to look expensive on purpose.

Prestige pricing means intentionally setting prices higher to signal status, quality, or exclusivity. Think:

• Luxury fashion houses pricing bags at $3,000+.
• High-end cosmetics brands selling \(80 foundations or \)120 serums.
• Boutique consulting firms with day rates that start in the thousands.

In these categories, a bargain price can actually hurt perceived quality. Customers are buying identity and signaling, not just utility. That’s why you’ll see rounded, confident numbers—\(300, \)500, \(1,000—rather than \)297 or $997. The psychology here is: “We’re not trying to look cheap. We’re signaling that we’re worth it.”

These are some of the best examples of psychological pricing strategy examples where the absence of charm pricing is deliberate.

Context and ethics: When psychological pricing crosses the line

There’s a fine line between smart pricing and manipulation. Regulators in the U.S. and U.K. have started to pay more attention to how companies present prices, discounts, and scarcity.

For instance, the U.S. Federal Trade Commission (FTC) has issued guidance and enforcement actions around deceptive pricing and “dark patterns” in subscriptions—like making it difficult to cancel or hiding fees until checkout. You can explore more about unfair or deceptive practices at the FTC’s site: https://www.ftc.gov.

Best practice if you’re using these examples of psychological pricing strategy examples in your own business:

• Make discounts real, not fake “was \(199, now \)49” claims that were never actually offered.
• Use scarcity honestly—don’t claim “only 2 left” if you have a warehouse full.
• Make auto-renewal and cancellation clear and straightforward.

Research from organizations like the U.S. Federal Trade Commission and academic centers focused on consumer protection has shown that transparent pricing builds long-term trust, even if it doesn’t maximize short-term conversions.

2024–2025 trends in psychological pricing

Psychological pricing isn’t new, but how it’s used is evolving.

Recent trends include:

• Dynamic pricing powered by AI. Airlines and ride-sharing platforms have been doing this for years, but now retailers and event organizers are experimenting with real-time price adjustments based on demand, inventory, and even customer segments.
• Personalized offers. E‑commerce platforms increasingly show different prices or discounts to different users based on browsing history or loyalty status.
• Subscription fatigue. After years of “everything is a subscription,” more consumers are scrutinizing recurring charges. Companies respond with psychological pricing tactics like “pause instead of cancel” and steep annual discounts.
• Transparency pressure. Regulators and consumer advocates are pushing back against junk fees and hidden charges, which means psychological pricing strategies must be paired with clear disclosures.

If you want to apply the best examples of psychological pricing strategy examples in 2025, you need to think not just about conversion, but also about fairness and long-term brand equity.

Practical tips for using these examples without annoying your customers

You don’t need to copy every tactic you see. A more realistic approach is to pick a few examples of psychological pricing strategy examples and test them methodically.

Practical moves:

• Experiment with .99 or .95 endings on key SKUs and measure impact on conversion and returns.
• Add a higher-priced “anchor” product or plan and track whether your mid-tier offer gets a lift.
• Introduce one clear, honest bundle and compare average order value before and after.
• Use scarcity and urgency only where it’s truthful—limited stock, real deadlines, seasonal offers.

Pair these tactics with good data hygiene. Track not just immediate sales, but refund rates, churn, and customer satisfaction. Research from business schools and consumer behavior labs, such as those at Harvard and other major universities, consistently finds that aggressive short-term tactics can hurt long-term loyalty if customers feel tricked.

FAQ: examples of psychological pricing strategy examples

What are some everyday examples of psychological pricing strategy examples I probably see without noticing?
You’re surrounded by them: \(9.99 price tags in grocery stores, “Was \)79, Now $39” sales at clothing retailers, restaurant menus with one very expensive dish to make others look reasonable, SaaS pricing pages where the middle plan is labeled “Most Popular,” and fast-food combo meals that seem cheaper than ordering items separately. All of these are real examples of psychological pricing strategy examples in action.

What is an example of psychological pricing in online subscriptions?
A classic example of psychological pricing in subscriptions is offering a \(29 month-to-month plan next to a “\)19/month billed annually” plan. The anchor of $29 makes the annual plan feel like a strong deal, even though it requires a bigger upfront commitment. Many streaming and SaaS platforms also introduce a low-priced but ad-supported tier as a decoy to make the ad-free tier look more attractive.

Do psychological pricing strategies still work in 2024 when consumers are more informed?
Yes, but with caveats. Consumers are better at price comparison, especially online, but they’re still human. Anchoring, charm pricing, and bundles continue to influence perception and behavior. The difference in 2024–2025 is that companies need to balance these examples of psychological pricing strategy examples with transparency, or they risk backlash, bad reviews, and regulatory attention.

Are there industries where psychological pricing is especially powerful?
You see especially strong effects in retail, travel, restaurants, digital subscriptions, and luxury goods. In categories where people buy frequently (like groceries) or where prices are complex (like airline tickets), psychological pricing can heavily shape what feels like a “fair” deal. In luxury, prestige pricing flips the script: higher prices can actually drive demand by signaling status.

How can a small business start using psychological pricing without hiring a consultant?
Start small and test. Use charm pricing on a few high-traffic items, introduce a slightly higher-priced anchor product, or create a simple bundle. Track sales before and after. Over time, you’ll build your own set of real examples of psychological pricing strategy examples that work for your specific audience, rather than relying solely on generic rules.