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The Truth About Pricing: How to Apply Behavioral Economics So Customers Buy - An Interview with Melina Palmer

Picture of Nicholas Page   Nicholas Page  ·  2 minute read

 

On this episode of Tech Marketing Trends, Brightvision CEO Jakob Löwenbrand sits down with Melina Palmer, CEO of The Brainy Business and author of The Truth About Pricing. Together, they explore how behavioral economics shapes customer decisions and how B2B leaders can apply these principles to build confidence in their pricing strategies.

 

Understanding how the brain makes buying decisions

Melina begins by explaining that customers don’t make purchasing decisions logically. Instead, most choices are driven by the subconscious brain. Businesses often approach pricing from a rational standpoint, but real success comes from recognizing psychological triggers that influence buying behavior.

“Humans make about 35,000 decisions every day. Most happen subconsciously, so if you don’t account for that in your pricing strategy, you’re missing the mark.” - Melina Palmer

 

 

Building confidence in pricing conversations

One of the biggest obstacles to effective sales isn’t the customer, but the salesperson’s own lack of confidence. When companies aren’t sure about their prices, it shows, often leading to missed opportunities. By adopting behavioral science frameworks, teams can learn to present prices with authority.

“When we aren’t confident in our pricing, it emanates in a way that can make you lose a deal — even if it’s a really great one.”

 

 

Choosing between quality and value positioning

Melina emphasizes the importance of clarity: is your business competing on quality or on value? Straddling both can create confusion and weaken your brand. Each positioning has its own pricing signals — rounded numbers and investment language for quality, versus discounts and urgency for value.

“Pick a side — quality or value. Living in the gray makes it difficult for customers to know how to classify you.”

 

 

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Recognizing the dangers of survivorship bias

Another key concept from behavioral economics is survivorship bias — focusing only on the visible data while ignoring what’s missing. In pricing, this can lead companies to replicate strategies that appear successful without understanding the unseen failures behind them.

“If you only look at the planes that came back, you miss the data from the ones that didn’t. The same applies when analyzing your pricing results.”

 

 

Framing prices to maximize perceived value

Melina shares practical tips, such as introducing a higher-priced “wingman” product to make your target offering appear more attractive. Anchoring prices this way changes customer perception, leading to better outcomes and higher average deal sizes.

“Create a product whose job isn’t to be purchased, but to make your best offer look good. Start high, and suddenly your $5,000 option feels like a deal.”

 

 

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