Decoy Pricing
Adding a deliberately unattractive option to make the intended one look better.
Decoy pricing is adding a third option, priced so that it makes the option you want people to choose look obviously better. It works because people judge value by comparison rather than absolutely. It is a presentation choice rather than a deception — provided the decoy is a real product someone could actually buy.
Definition
The classic demonstration: offered a $59 web-only subscription and a $125 print-and-web bundle, most choose the cheaper. Add a $125 print-only option and most switch to the bundle, which now appears to include the web edition free.
The tier structure of most SaaS pricing pages is built on this, usually as a highlighted middle plan flanked by one that is too limited and one that is more than most buyers need.
Why It Matters
Pricing pages are where the highest-intent traffic lands. How the options are arranged changes which is chosen, independently of the prices themselves.
Example
Three tiers at $9, $29 and $99 with the middle marked "most popular" is decoy structure. The $99 tier's main job is to make $29 look moderate.
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