Understanding the psychology of pricing is one of the most powerful shifts you can make in your business—and in this two-part series, I’m breaking it down in a way that’s practical, eye-opening, and yes, even a little fun.

In this first episode, we’ll focus on the external side of pricing psychology: how your customers interpret, respond to, and are influenced by the prices you set. Because what you need to get into your head is…your prices are never just numbers. They’re messages. And if that message isn’t aligned with the value you’re delivering, it’s going to send people running (or at the very least, confuse them into not making a decision).

Whether you realize it or not, every price you present is eliciting a response. The way it’s structured, the context it’s in, and even the number itself—all of it shapes how potential clients perceive your offer, it’s value, and your credibility. If you’re not being intentional about how you communicate through price, you’re leaving their interpretation up to chance.

This episode is for you if:

• You’ve ever priced an offer based on what “someone else” told you works (hello $297!)
• You’ve lowered your prices thinking it would lead to more sales—only to be met with silence
• You feel unsure how your customers are actually making buying decisions
• You want to stop second-guessing your pricing and start using it as a clear, value-driven communication tool

We’ll also explore some of the most common pricing mistakes I see service-based businesses make—especially those led by women—and why those missteps lead to confusion, hesitation, and lost sales. But don’t worry—I won’t just leave you with a list of what not to do.

I also give you a peek into five proven psychology of pricing tactics that smart businesses use to help guide customer perception and increase conversion. I won’t spoon-feed you all the details (you’ll have to tune in for that!), but I will say this: when you understand these principles, you gain the confidence to price more strategically, and you’ll start to see your prices working for you—not against you.

Now, this is just Part 1. Next week in Part 2, we’ll flip the focus inward and look at the internal side of pricing psychology—your mindset. We’ll talk about the beliefs, fears, and emotional blocks that creep into your pricing process (whether you realize it or not), and how they affect not just your numbers, but your entire relationship with your business and your customers.

So if you’ve ever felt unsure about how your prices are coming across, or if you’re ready to start being more intentional and effective with how you communicate value, this episode is a must-listen.

Click play and let’s unpack the psychology of pricing together.

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Get started improving your business. Beyond this pricing podcast there’s more for you to explore. Sometimes it’s difficult to know where to begin. I suggest you Download the the self assessment Pricing Scorecard to get a view of what’s working and not in your business. Ever wondered, “What’s a fair price?”, check out my on-demand webinar “Getting to A Fair Price“. Two great places to get started with pricing in your business today.

Get in touch with Janene, your Business Strategist & Pricing Coach. If you’ve got a business question that needs answering, a pricing challenge you’re facing or you have suggestions for future topics or guests, let me know. Your questions and insights often become episodes. Share yours with me and let’s see where it goes. Contact Janene.

Transform your business and life. My mission is to help women like you build a more sustainably profitable business. One where you can confidently charge for the value you deliver. Curious about my coaching and consulting offers, check them out. Let’s see how we can work together. Book a complimentary Call today!

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Podcast Summary

Have you ever stopped to wonder what message your prices are sending?

Spoiler alert: they’re saying a lot more than you think—and your customers are listening. If you’ve been setting prices based on gut feeling, copying competitors, or following “online advice” without knowing why it works (or doesn’t), this episode is a must-listen. In this first of a 2-part series, we’re diving into the external side of pricing psychology: how your customers perceive price, interpret value, and make buying decisions—whether consciously or not.

Buckle up-it’s time to get intentional about how your pricing communicates.

Why Pricing Isn’t Just Math—It’s Mindset

Yes, numbers are involved in pricing. But the real driver behind price acceptance – psychology. As I like to say, “pricing is all about the psychology, baby”. (And yes, imagine the eyebrow wiggle.) Your customers aren’t just seeing a number. They’re interpreting a message: about your brand, your offer, and the value they expect to receive…and even what you think of the value your offer brings.

We often underestimate just how much pricing is perception. And if you’re not aware of how your price is being perceived, you might unintentionally be putting barriers between you and your next sale.

Common Pricing Mistakes That Undermine Your Value

There are a few big mistakes I see all the time that sabotage your pricing efforts. First up: using random “trendy” prices like $297 or $999 because someone online said it works. If that number doesn’t align with your business values or your positioning for example, your customer will notice—and it won’t feel right.

Another myth? That lower prices equal more sales. It can work in certain industries, like fast-moving retail, but for service-based businesses or premium products, it can backfire. Low prices can imply low value.

Then there’s the classic “just follow the crowd” method—basing your prices on what competitors charge without factoring in your customer, your offer, or your unique value. That usually results in pricing that feels off, either too high or too low.

It’s quite easy to chip away at your own value perception when you’re not paying attention. Understand more about the psychology and you can avoid these and other missteps.

A Taste of How You Can Use the Psychology of Pricing

Now, here’s where it gets really fun—how you can use psychology in pricing to help customers not only understand the value your offer brings but feel it too.

In this episode, I walk you through five powerful ways you can apply pricing psychology to shift perceptions, build trust, and make buying decisions easier. I’m not talking gimmicks—I’m talking smart, intentional strategies that align with your brand and make sense for your business.

Without giving too much away, I touch on how one simple number can completely change how your offer is perceived, when keeping things simple becomes your secret sales advantage, and why certain pricing approaches work beautifully in one business but miss the mark in another. I even highlight a common tactic you’ve seen everywhere—one that’s quietly influencing buying behavior in the background.

Intrigued? You should be. This isn’t about playing games—it’s about understanding how people think and using the psychology of pricing to connect more effectively with your customers and your market.

Pricing Psychology Isn’t Manipulation—It’s Clarity

Sometimes people worry these tactics are manipulative. But here’s the thing: it’s not manipulation when it’s based in truth and used to support good decision-making. If your offer truly helps people, your pricing should reflect that. Understanding psychology ensures you don’t send the wrong message—or accidentally make buying harder than it should be.

So if you’ve been winging it with your prices, consider this your sign to pause and reflect. Ask yourself:

• What is my pricing actually saying about my offer?
• Is it aligned with the value I deliver?
• How might my customer be interpreting this?

Want to Price More Confidently?

Then don’t miss this episode. I cover the essential shifts and practical strategies that will help you price more intentionally—and effectively. And stay tuned for part two, where we flip the lens and look at how your own psychology affects pricing.

Tune in now and find out what your prices are really saying to your customers—and what to do if the message needs tweaking. Let’s make pricing a tool for connection, not confusion.

Subscribe, rate, and review the Live With The Pricing Lady your go to pricing podcast for service based businesses, for more insights. I’d love to hear your thoughts, questions, and topic ideas—connect with me at thepricinglady.com. Remember, pricing is a continuous journey, and together, we’ll make sure it leads to success!