TEALPRINTS 002, Wednesday, March 12, 2025
🚀 The Quick Hit: The Premium Pricing Playbook
Ever wonder why customers happily pay $5 for a Starbucks coffee but hesitate at a $2.50 cup from the diner next door? It’s not about the coffee—it’s about perceived value.
Let me tell you a quick story. A while back, I was at an airport, running on fumes, and I needed coffee—badly. Two options: A tiny, no-frills kiosk selling coffee for $2.50 or the Starbucks across the hall charging $5.25 for essentially the same thing. Guess where the line was? Wrapped around the Starbucks like it was the last coffee on Earth.
It wasn’t about the beans. It wasn’t even about the taste. And it was about the brand, the experience, and the pricing signal that says, ‘This is premium.’
People don’t just buy products—they buy stories, status, and signals. If your pricing isn’t positioned right, you’re leaving money on the table.
⚡ Quick Takeaway: The way you present your price matters more than the price itself. Tiny tweaks can make a $100 offer feel like a steal—or a $10 product seem expensive.
By the way, we just published a sample of our premium newsletter. If you love what you’re reading here, the paid version goes deeper, with more tactics and real-world examples.
Now, let’s break down the strategy.
📌 The Breakdown: The Psychology of Pricing Power
🚫 The Mistake: Thinking Price = Value
Most entrepreneurs believe their price reflects their value. But that’s wrong. Customers don’t buy based on logic; they buy based on perception.
Here’s what happens when pricing is positioned poorly:
- Customers hesitate, thinking they can get the same thing cheaper elsewhere.
- They assume lower prices mean lower quality.
- They become price shoppers, not loyal buyers.
✅ The Shift: Price = Perceived Value
In Priceless: The Myth of Fair Value, William Poundstone reveals how pricing tricks our brains. We don’t judge prices in isolation—we compare them.
💡 The Action Plan: 5 Price Psychology Hacks
1️⃣ The Price Anchor Effect – Show a high-priced option first to make your real offer look like a bargain. (Why do you think menus have a $100 steak?)
2️⃣ Charm Pricing ($97 vs. $100) – Studies show prices ending in 7 or 9 (e.g., $97) feel significantly cheaper than round numbers.
3️⃣ The Context Game – Apple sells $1,500 iPhones, so a $200 AirPods purchase feels like a no-brainer. What high-ticket offer makes yours feel like a great deal?
4️⃣ The Decoy Effect – Introduce a “bad” option to make your main product look even better. Example: A $10 coffee next to a $5 one makes $5 seem like a steal.
5️⃣ Bundling for Value – People love “free” bonuses. Instead of discounting, add a valuable extra: “Buy this course and get a bonus 1:1 session ($250 value) free!”
🔥 Want more pricing insights and tactics? Our premium newsletter sample is out now—get a taste of what’s inside.
🤖 AI Prompt of the Week: The Pricing Power Generator
“Act as a pricing strategist. I sell [describe your product/service]. Give me 3 psychological pricing strategies I can apply to make my offer feel more valuable.”
⚡ The Fast Five: Your Weekly Profit Playbook
Strategy: The Art and Science of Pricing (Lenny’s Podcast: Product | Growth | Career)
Tool: Psychological Pricing: Tactics, Strategies, and Key Examples (Shopify)
Mindset: Pricing Strategies: Charge More, Earn More! (Alex Hormozi)
Book/Podcast: Live with The Pricing Lady, the Podcast
Creator: Alex Hormozi’s Value Equation & How to Generate 100M Offers
Unlock the Premium Edition 🔥
Want more depth, tactics, and exclusive pricing strategies? We just released a sample of the premium version of this newsletter. It’s packed with advanced insights to grow your business faster and more profitably.
Until next time, keep leveling up!
— Ben
