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Latest / The Pricing Marketing Podcast with Fexingo: Price Anchoring, Bundling, and Conversion Pricing

How a 1000 Dollar Decoy Makes a 200 Dollar Subscription Seem Cheap

In this episode of The Pricing Marketing Podcast, Lucas and Luna explore how a high-priced decoy option can make a mid-tier subscription feel like a bargain. Using a real-world example from a B2B SaaS analytics platform, they break down a three-tier pricing table: a $200 standard plan, a $1,000 enterprise decoy, and a $150 mid-tier plan that suddenly becomes the obvious choice. They discuss the psychology behind anchor-and-decoy pricing, reference classic examples from The Economist and movie popcorn, and examine why adding a premium option can boost conversion on the middle tier by up to…

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