This psychological trigger can increase profits overnight

You’re leaving money on the table if you ignore this fundamental pricing principle.

Everyone wants to increase their sales.

But not all sales are created equal — some are more profitable than others. In any given product line, items that seem like they’d provide similar profitability, often don’t.

That’s because the cost to market, manage, and sell a product doesn’t have a direct correlation with the final price. Products that cost less to sell bring in a bigger percentage of their sale price — they’re more profitable for the brand.

So how do you get customers to pick the option that’s best for your bottom line?

There are a few tactics you might use. You could:

But, there’s a way to price your products that will make choosing the highest margin item a no-brainer. It takes advantage of a psychological trigger that’s easy to use, with proven results.

It’s called the Decoy Effect, and it’s a research-backed way to increase your profits.

When there are only two options, and they’re priced “fairly,” people make decisions according to personal preference.

But, if there’s a third choice that’s overpriced compared to the first two options, it changes how people consider all of the options.

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