12 Ways Bargains Impact Your Brain

We all like to think that we're getting the best deal, whether we're shopping in store or online. Getting a bargain makes us feel good, as if we've unlocked a secret and outsmarted the system somehow.

Retailers know this and use psychological pricing strategies that play into our desire to score the best deal and come out winning. Nick Kolenda, a marketing consultant specializing in the psychology of pricing, says in his book Methods of Pricing, that people can be swayed not just by the price of an item but also how that price is presented. "Ultimately, price is perception," he told AARP in a recent interview.

Here are 12 common psychological pricing strategies that will influence your brain:

1. Charm pricing. Charm pricing is pricing that ends in .99 or .95 instead of a round number (e.g., $19.99 instead of $20). This tactic works because our brains fixate on the first digit, called the anchor, making $19.99 feel significantly cheaper, even though the difference is literally a penny.
2. The color red. Red grabs attention and seems to make shoppers less price-conscious. That's especially true for men, who, according to studies, are drawn to the color. 
3. Strange fonts. It takes your brain time and effort to read odd-looking letters and numbers, so you're more likely to stop and focus on the deal. 
4. Small type. While large-size type can be effective at grabbing your attention, small type often conveys a bargain. If the sale price is visibly smaller than the original price, our brains perceive it's a better deal. 
5. Positioning. Studies show that prices placed on the right feel heftier to your brain, and conversely, prices placed on the left feel lighter. 
6. Using "Wow" words. Pairing descriptive words with prices, for example "For a small $10 fee," "Only $29.99," or "For a low price of $99," is effective because your brain merges the two and associates the price with the words.
7. Coupons. Who doesn't love coupons, right? They shift your brain's attention from the price to the amount saved. For instance, if you see an item marked from $25 to $20, your brain focuses on the final price. However, if you have a $5 coupon, your brain focuses on the amount saved, which gives more positive vibes, and not on how much you're spending.
8. Bundle deals. Bundle pricing offers a group of items at a lower price than if you bought each item separately. For example, a restaurant may offer a meal deal that includes a sandwich, fries, and drink at a price that is cheaper than if paid for individually. This taps into your brain's desire to get more for less but can actually encourage you to buy more since you're saving money.
9. Reference prices. Advertised prices, suggested retail prices, past prices, and competitor prices are all points of reference that our brains use to assess a deal. However, if an item's "original price" is inflated, the sale price might not be such a great deal in the end. Your brain may also tend to overlook add-on charges and fees, focusing instead of the large difference between the original and sale price. 
10. Odd math. This strategy uses simple math in a way that's more appealing to your brain. For example, a bag of chips might be on sale for "50% off when you buy two." Next to it, a different brand of chips could be "buy one, get one free." The buy one, get one free option sells better, even though the math is exactly the same. Your brain just prefers the simpler message.
11. Colorful signs. Even if an item isn't marked down, bright, colorful signage can boost sales. Similar to a party, the colorful banner suggests to your brain that there is a special event or promotion, and you don't want to miss out.
12. Perceived quality or value. Sometimes, the price of something influences your brain as to how good it is. A higher price might make you think a product is better quality, even if it's not. A lower price might make you feel like you're getting a better value, when you're actually not, especially if the item is poor quality.