This is an amazing podcast from ABC radio – the psychology of pricing.

It talks about research into pricing. One of the most interesting concepts is about price “anchoring” where the first price a consumer see’s becomes massively influential on their perceived value of similar products.

It’s a fairly scientific look at it, but I find it fascinating how little things can make such a big influence – think about how Apple’s price setup of their iPhone apps (with lots of apps being free) has a huge influence on what you think you should pay for an app.

It’s about 20 minutes, but worth it if you have time.