Latest / The Pricing Marketing Podcast with Fexingo: Price Anchoring, Bundling, and Conversion Pricing
How a Free Plus Shipping Offer Anchors Your Perception of Value
On today's episode, Lucas and Luna explore the psychological mechanism behind the 'free plus shipping' pricing model — where a product is offered for free and you only pay shipping. They dissect how this creates a powerful anchor that makes the shipping fee feel like a bargain, even when it's marked up to cover the product cost. Using the example of a historical offer from a well-known knife brand, they break down the consumer psychology: the word 'free' sets a zero-dollar anchor, making any positive number seem small by comparison. They also discuss how this…
The skinny
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