| name | anchor-and-decoy-pricing |
| description | Use when designing pricing tiers. Anchor + decoy = psychological pricing that improves conversion.
|
Anchor and Decoy Pricing
Anchor: high price set first; decoys: nearby options that make your target tier look better. Used in 3-tier pricing.
3-tier pricing pattern
Standard: 3 tiers ascending
- Tier 1 (cheapest): $99 — feels limited
- Tier 2 (target): $297 — feels balanced
- Tier 3 (anchor): $997 — sets expectation
The $997 'anchor' makes $297 look reasonable. The $99 looks limited compared to $297.
Result: more buyers choose Tier 2 than would otherwise.
Decoy effect
Tier 2 + decoy creates asymmetric dominance:
- $99: just access
- $297: access + community + bonuses ('clearly better than $99')
- $497 (decoy): access + community + 1:1 (less attractive than $297)
The $497 decoy makes $297 look exceptional value.
CardPrepAI pricing example
Foundations course pricing:
- Self-paced ($99) — entry tier
- Self-paced + Community ($297) — target tier
- 1:1 Mentorship ($997) — anchor tier
Most buyers choose $297 (middle, target). $99 captures price-sensitive. $997 captures premium + sets value perception.
Where this fits in the X3 empire
Pricing psychology for CardPrepAI courses.
