How to Calculate Your Own Pricing

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In general, when you look at your own pricing, so yes, we do tend to round down in that way. And when you see four 99, it feels more like four than five, even though it shouldn't. So the difference from 1100 to 1,099 is not as great as going from $1,000 to $999. The way you frame something has a difference on how someone will feel about paying for that particular item.

Which product makes you more likely to buy it? A bag of chips that says, “90% Fat-Free” or a bag of chips that says, “Made With 10% Fat”? Sure, the answer seems like it’s obviously the first option, but can you explain the reasons why?

Melina Palmer can, and as a behavioral economist, she’s here to explain why we buy the things we buy in this episode from the archives. As the podcast host of “The Brainy Business; Understanding the Psychology of Why People Buy,” Melina discusses the ways science can be used to unlock the consumer decision-making process and unleash the key to your business’ success.

She and Daniel talk about how behavioral science utilizes economics, psychology, and neuroscience to reveal the secrets behind the subconscious decisions we make on an everyday basis.

Follow Melina:

Website: https://www.thebrainybusiness.com

Podcast: https://thebrainybusiness.com/why-behavioral-economics/#

Follow Daniel:

Twitter: https://www.twitter.com/Dmurr68

LinkedIn: https://www.linkedin.com/in/daniel-murray-marketing

And thanks to our episode sponsor, Retention. What do brands like Warby Parker, Dr. Squatch, Vital Proteins, and Blendjet all have in common? Retention.com is their highest-performing ROAS channel by far. Visit Retention.com to book a demo today.

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Daniel is a Workweek friend, working to produce amazing podcasts. To find out more, visit:

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