Why is Profit Builder priced this way?

This looks like an attempt at "decoy pricing", a tactic described by Dan Ariely, among others.

The key is that the highest-priced item (the one the vendor wants you to buy) is priced the same, or very nearly the same, as the next lowest item in a choice of three. The top price then looks a bargain in comparison.

In the Profit Builder example, the $67 middle option is the decoy.

There's an infographic explaining the process here (no affiliation):

The Science of Pricing: 7 of the Best Product Pricing Strategies [Infographic]

EDIT: Kurt posted as I was writing.

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Kurt

10 years ago

Originally Posted by Frank Donovan

This looks like an attempt at "decoy pricing", a tactic described by Dan Ariely, among others.

The key is that the highest-priced item (the one the vendor wants you to buy) is priced the same, or very nearly the same, as the next lowest item in a choice of three. The top price then looks a bargain in comparison.

In the Profit Builder example, the $67 middle option is the decoy.

There's an infographic explaining the process here (no affiliation):

The Science of Pricing: 7 of the Best Product Pricing Strategies [Infographic]

EDIT: Kurt posted as I was writing.

Sure Frank, blame it on me being a faster typer. You know the truth is, you are Jimmy Page to me being Willie Dixon.

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Frank Donovan 10 years ago

Originally Posted by Kurt

Sure Frank, blame it on me being a faster typer. You know the truth is, you are Jimmy Page to me being Willie Dixon.

LOL. Touché, Kurt.
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Kurt

10 years ago

Originally Posted by Landisama

Hey folks,

I was wondering why is Profit Builder priced with 0.67 difference on two plans.

Link to pricing table: WP Profit Builder » Choose the BEST Package for Your Needs...

Is this a new way to lure users to choose one of the two similar plans?

I saw on JVzoo and found that the plan priced 67.67 was the one that sold best.

Any ideas?

Thanks

I posted about this technique here a while back, and it got no intererst. It concerned how movie theaters price buckets of popcorn.

This is a technique that exploits human psychology. If you have 3 price levels and the "middle" price is pretty close to the highest price, with the highest price option offering "more", many people will view the highest price package as the better deal.

Let's say you have 3 options:
$12 $17 $27, many people will choose the $12 option.

However, if you have the following:
$12 $24 $27, many people will chose the $27 option, as it will be perceived by many as offering the best value.

What this method does is make it easy for people to make a comparision to in order to "choose" the best deal.