I have to marvel at some of the psychological pricing “tricks” supermarkets use to “fool” us into buying more.
I was in the supermarket the other day, and I saw a 72 biscuit box of my favourite breakfast cereal, Weetabix, for £4.90. Now, since I don’t normally see boxes of that size (they normally come in smaller boxes of 24 biscuits), I assumed that was pretty decent value for money – and the average price in my local store for a smaller box was about £2, so I knew this was cheaper than my local store. (Locally, it would cost me £6 for the same number of biscuits).
But then I thought, “Wait… let me check”. So I looked at the price of the 24 biscuit boxes, and they were £1.50.
“Wait a minute,” I thought to myself, puzzled. “I could buy 3 of these smaller boxes [3 x £1.50 = £4.50]… that would be the same number of biscuits as the larger box [£4.90], yet it would be cheaper!”
I grinned smugly to myself as I picked up 3 of the smaller boxes, thinking I had fooled the supermarket and saved myself 40 pence. (Oh, how wrong I was.)
I pointed this out to my brother, and then he said something that totally blew me away.
“So why are you buying 3 boxes?” he asked, casually.
At that moment, I suddenly realized how even more devilishly clever the supermarket was being. I had perceived that I was saving 40 pence by buying 3 individual boxes… but really, I was being “fooled” into buying 3 boxes when I didn’t need to!
At £1.50 for a box of 24 biscuits, I could just as easily have bought 1 or 2 of them… I didn’t need to buy all 3… but because I compared the price of 3 smaller boxes (£4.50) to the higher price of the larger 72 biscuit box (£4.90), I was “fooled” into thinking I’d be making a 40 pence saving by buying 3 smaller boxes!
“Fooled” is probably the wrong word, but the pricing was cleverly devised to get a poor sucker like myself to buy more than I might have done if the higher priced 72 biscuit box wasn’t there!
And if I hadn’t bothered calculating the values in my head, I may have ended up paying 40 pence more for the bigger box!
This highlights a principle I discussed in my report Pricing For Big Profits, that of the contrast principle – which shows that we often look at value in relative, rather than absolute terms.
It was this very principle that nearly led me to buy 3 boxes of Weetabix, when I didn’t really need to at all! I say “nearly”, because after I realized this, I put one of the boxes back… I didn’t need all 3!
I’d love to hear any stories like this that you might have. Please also feel free to share this post with your friends on Twitter.