Decoy Pricing
Decoy pricing introduces a third, deliberately less attractive option to make a specific target plan appear to be the best value.
In depth
Decoy pricing relies on the decoy effect, where adding an option that is clearly dominated by one choice makes that choice more appealing without changing its own price. The classic structure offers a cheap small plan, an expensive large plan, and a medium plan priced so close to the large one that the large plan looks like an obvious upgrade. The decoy is rarely meant to sell; its job is to reframe the comparison so the target option wins.
The main pitfall is making the decoy so transparently useless that savvy buyers feel manipulated, which can reduce trust across the entire pricing page. In a quiz-funnel, decoy structures are most effective when the recommended plan is matched to the prospect's scored profile, so the target the decoy promotes is also genuinely the right fit. This alignment keeps the tactic persuasive without crossing into deception, because the nudge points toward the plan the lead actually needs.
Example in practice
Frequently asked questions
What makes the decoy effect work?
It works because people compare options relative to each other rather than in absolute terms. When one option is clearly worse than a target plan on price-to-value, the target becomes the obvious choice without any change to its own price.
Is decoy pricing ethical?
It is acceptable when the decoy is a real, purchasable plan and the promoted target genuinely fits most buyers. It crosses into manipulation when the decoy is fake or the target is wrong for the customer's actual needs.
How many options should a decoy structure have?
Three is the classic count: a low anchor, the target, and a decoy positioned to make the target look superior. More than three can dilute the contrast and increase choice paralysis.