In 2007, Coulter and Coulter presented two different ads to two randomly selected groups of customers. Both promoted a £10 discount on flights to Turkey. In one ad, the ticket price was £188; in the other, it was a higher £233. Surprisingly, customers felt the cheaper tickets offered worse value. Why? The researchers discovered that people distinguish smaller numbers more sharply. The gap between 4 and 3 feels more noticeable than the gap between 9 and 8. As a result, customers were more inclined to purchase when prices ended in lower digits (£244 to £233) than when they ended in higher ones (£199 to £188). The lesson is straightforward: when you run a discount, aim for a sale price that ends below five. That’s just one pricing insight I’ve covered on my podcast Nudge, the U.K.’s number one marketing podcast. Below are four additional psychology-based strategies for pricing your products. Table of Contents Break down your price. Highlight the price difference. Be open about your costs. Make the difference easy to see. Break down your price. Take a look at these two ads for a budget lunch from Huel. One highlights the total cost for 21 meals (£78.96). The other focuses on the cost per lunch ($3.76). Studies show that presenting the price per unit resonates better with customers. Displaying a smaller figure makes shoppers feel they’re securing a stronger deal. Richard Shotton and Michael Aaron Flicker examined nearly identical ads in their excellent book Hacking the Human Mind. In one experiment, 282 shoppers…