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Decoy Pricing - Pricing Strategy

Writer's picture: Shola AjaniShola Ajani



At the School of Consulting, we’ve always emphasized in price modeling that you should never present a client with just one price.


This forces them into a simple yes or no decision.


Instead, by offering multiple options, the client shifts their thinking to deciding which option to choose.


For example; offer pricing option for your services or products;


Option 1: $100


Option 2: $200


Option 3:$250


Another trick is to make price of option 2 & 3 so close, that option 3 appears to be a better offer.


It is called Decoy Pricing.


In the example, by making the prices of Option 2 and Option 3 very close, Option 3 seems like a better value compared to Option 2, encouraging customers to choose it over the others.

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