<story><title>A Guide to Pricing Plans</title><url>https://capitalandgrowth.org/answers/Article/3169972/The-Definitive-Guide-to-Pricing-Plans</url></story><parent_chain><item><author>davidajackson</author><text>&amp;gt; Yes, Product C is slightly cheaper than the most expensive option, but it offers less storage than any of the options.&lt;p&gt;Why would a business want wrong looking pricing on their pricing page, &amp;quot;decoy&amp;quot;s aside? Seems that would deter people more. Makes the business seem like it doesn&amp;#x27;t have its stuff together. Would you trust a company that seems like it can&amp;#x27;t do simple math? I think the author may be getting at something here--perhaps adding a third, unrelated or irrelevant option drives more conversions, but nonsensical pricing doesn&amp;#x27;t seem like the way to do that.</text></item></parent_chain><comment><author>Guest0918231</author><text>It would make more sense to have prices $40, $50, $60, where the $50 plan is always on sale for $30. Then, you effectively have a $30 and $60 plan, and the $40 is a decoy to make $30 seem like great value.&lt;p&gt;I designed a quick example below. That being said, I have no experience with pricing strategies, and I feel like this example is missing out on users and businesses that would be willing to spend $100.&lt;p&gt;&lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;i.imgur.com&amp;#x2F;vzaoy8q.jpg&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;i.imgur.com&amp;#x2F;vzaoy8q.jpg&lt;/a&gt;</text></comment>
<story><title>A Guide to Pricing Plans</title><url>https://capitalandgrowth.org/answers/Article/3169972/The-Definitive-Guide-to-Pricing-Plans</url></story><parent_chain><item><author>davidajackson</author><text>&amp;gt; Yes, Product C is slightly cheaper than the most expensive option, but it offers less storage than any of the options.&lt;p&gt;Why would a business want wrong looking pricing on their pricing page, &amp;quot;decoy&amp;quot;s aside? Seems that would deter people more. Makes the business seem like it doesn&amp;#x27;t have its stuff together. Would you trust a company that seems like it can&amp;#x27;t do simple math? I think the author may be getting at something here--perhaps adding a third, unrelated or irrelevant option drives more conversions, but nonsensical pricing doesn&amp;#x27;t seem like the way to do that.</text></item></parent_chain><comment><author>csa</author><text>Yeah. Their first example of the decoy is not the best, imho. The Economist example is much better.&lt;p&gt;IIRC, around the time the Economist did this change, their annual print price increased. I imagine that this change made the transition much smoother.</text></comment>