For creatives, pricing is not just a number. Understanding how people perceive numbers and process pricing decisions can give you a significant edge in setting prices that resonate with your audience while ensuring fair compensation for your work. In this article, we will break down how number perception works and explore practical ways to leverage this knowledge. 

How People Perceive Numbers in Prices 

The way people interpret numbers often defies logic. Research has shown that buyers don’t evaluate prices as a series of digits. Instead, they simplify, round, and categorize numbers to make decisions easier.  

For example, when someone sees a price like €1,882, they tend to focus on the first digits, interpreting it as “around €1,800.” Similarly, €31.99 feels like “around €30” due to what researchers call the “Drop-off Mechanism.” This tendency to focus on the leftmost digits explains the widespread use of prices ending in .99. 

Moreover, rounded numbers like €100 or €50 often feel more straightforward and trustworthy. On the other hand, precise numbers like €4,975 can give the impression of careful calculation, making the service seem specialized and premium. Both strategies have their place depending on the impression you want to create. 

How Your Context Impacts Your Price 

Our perception of value is shaped by context. For instance, saving €10 feels significant on a €30 item but insignificant on a €500 purchase. Similarly, people react more strongly to small differences at lower price points. The jump from €2 to €3 feels more noticeable than from €8 to €9, even though the numerical difference is the same. 

This psychological principle means that adjusting your prices, even by small increments, can have different impacts depending on where your services or products sit on the pricing spectrum. For lower-cost offerings, small price changes are highly noticeable. For premium services, clients are less sensitive to such shifts. 

Putting It into Practice 

For creatives, pricing strategy can shape how your audience perceives your work. A carefully chosen price signals not only what your service is worth but also what kind of experience clients can expect. 

When selling premium items like a comprehensive branding package, rounded numbers work well. A price like €5,000 can feel polished and easy to process. This simplicity builds confidence, assuring clients that they’re making a straightforward investment. On the other hand, for smaller, transactional products like art prints or templates, ending prices with .99 can make them appear more affordable and accessible. 

In addition, you should think about how your context impacts the perception of increases and decreases in price. If you’re providing a comprehensive service with a high price point, price increases may go more unnoticed. On the other hand, when selling for example small prints, a price increase of even 5€ can feel like a lot. Therefore, when increasing prices, you should focus on percentage increases. Read more about raising prices without losing customers here.