The Product Handbook

Pricing Psychology: Anchoring, Decoys, and Freemium Models

The Product Handbook

Show Notes

In this episode of The Product Handbook, we dive into the psychology of pricing — and how small tweaks can change the way customers perceive value.

You’ll learn: How anchoring shapes purchasing decisions and why the first price shown matters so much The decoy effect and how an extra option can make your preferred plan look irresistible Why .99 pricing, freemium models, and value-based pricing work the way they do How to test and validate your pricing strategy with data instead of guesswork

If you’ve ever wondered why a subscription suddenly feels like a bargain or why one menu item makes the rest look affordable, this episode unpacks the frameworks and tactics behind pricing that sells.

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