3 Psychological Pricing Strategies for your Shopify Store

3 Psychological Pricing Strategies for your Shopify Store

Pricing is one of the most important factors in the four Ps (Product, Price, Place, Promotion) that determine customer purchase rate and conversion rate in your Shopify store.

That's why pricing is an important part of any marketing mix. Your pricing can influence customer perception of your products and help drive or dive sales.

Pricing as a marketing strategy, especially psychological pricing, can affect the purchasing decisions of your customers and make or break conversion.

Before I introduce the 3 most popular psychological pricing strategies to you, let's explore what psychological pricing is, and how our Shopify app, Rubix Bulk Price Editor, can help you implement psychological pricing strategies into your Shopify business.


Psychological pricing is a type of pricing and marketing strategy where prices are made to have a psychological impact on the buyers. Hence the term psychological pricing.

The prices in psychological pricing are set in a way to influence the purchasing decision by helping them satisfy a psychological need which could be a need to save money or get a good bargain.

3 popular types of psychological pricing

There are six proven psychological pricing strategies but we will be looking at the 3 psychological pricing strategies prized for their effectiveness.

  • Charm pricing
  • Charm pricing is a popular psychological pricing strategy where a cent is removed from the round dollar price to psychologically trick the customer into thinking the product cost less. So, $10 becomes $9.99 and the customer thinks he is buying the product for $9 instead of $10. To implement this in your Shopify store, you'd have to make a price change in Shopify and minus one cent from your prices. If you want to implement the charm pricing in your Shopify store, our easy-to-use Shopify app, Rubix bulk price editor, is your best choice. With just a few clicks, you can automatically update your price.

  • Odd-even pricing
  • A similar strategy to the charm pricing is the odd-even pricing where prices are set to end in an odd number: a product that's supposed to sell for $10 is put on sale for $9. Interestingly, this pricing strategy is backed by studies which have shown that customers purchase items more whose prices ended in an odd number. It might interest you to know that a study on psychological pricing found that 70% of products' prices in Amazon and other e-commerce stores end in 9, an odd number. It is easy to implement the odd-even pricing in your Shopify store with our easy-to-use Rubix bulk price editor. All it takes is just a few clicks to automatically update your price.

  • Slashing the Manufacturer's Suggested Retail Price (MSRP):
  • Manufacturers usually suggest a retail selling price for their products across different e-commerce or retail stores. You can slash the manufacturer's suggested retail price to influence the purchasing decision of shoppers. You can implement this psychological pricing in Shopify using the "Price" and "Compare at price" under the pricing section. You can also implement this pricing strategy when running Shopify flash sales or discounted sales. Our Shopify app, Rubix Bulk Price Editor, can be used to easily implement this pricing strategy. Our Rubix Bulk Price Editor has the following features: a price editor tab for setting the price and comparing at price and a bulk discount manager to set a discounted price. Our Rubix Bulk Price Editor also has features to use to schedule price changes and schedule sale prices.