Episode 45: Strategy and Tactics of Pricing- Pricing Psychology

Why do some prices feel right while others trigger hesitation? In this episode of Main Street Matters, Patrick Keiser explores one of the most fascinating and practical parts of pricing strategy: the psychology behind how customers perceive value.

As Thomas Nagle writes in The Strategy and Tactics of Pricing, “Customers do not perceive prices as numbers; they perceive them as cues about value.”

In this episode, you’ll learn:

• Why customer perception matters more than the number itself
• The key psychological principles behind price perception, from anchoring and charm pricing to the decoy effect
• How display design, product storytelling, and staff language can shift how customers feel about price
• Three simple ways to apply pricing psychology in your shop this week

If you’ve ever wondered why a $49 item sells better than one priced at $50 or how to make prices feel fair, confident, and aligned with your brand, this episode will give you the insight (and tools) to do it.

Keywords: independent retail, small business pricing, pricing psychology, value perception, retail strategy, price anchoring, behavioral economics, Main Street marketing, The Strategy and Tactics of Pricing