How charging more can actually win you more customers

In 1979, Edward Lorenz asked whether tiny events could have huge consequences. His Butterfly Effect rippled through meteorology. But a parallel emerged in pricing psychology: small price changes can generate massive shifts in demand.

Researchers in consumer behavior discovered a sweet spot of resistance—around 15 to 20% objection. Too little resistance and your price is weak; too much and you lose sales. This aligns with the anchoring principle: once people see a number, they latch onto it even if the number is arbitrary.

Consider American Express. By pricing its card just $1 above Diners Club, it signaled exclusive prestige, instantly attracting an upscale segment. Or Timberland: once its boat shoe underpriced Top-siders, it flopped; when Timberland raised its price above Top-siders, sales soared.

Anchors shape perception, and measured resistance signals value. In complex services—legal, consulting, coaching—prospects often interpret a higher price as higher quality, filling the Deadly Middle trap where mediocre prices and mediocre perceptions collide.

This is not guesswork. It’s grounded in decades of behavioral economics and anchored in rigorous testing. When set right, price becomes a powerful brand statement and profit driver.

First, talk to a handful of satisfied clients and ask what they’d have paid. Next, subtract the habitual complainers to find that 15–20% pushback level. Then map your rates against competitors and slowly inch above the midrange. Finally, test two price levels in parallel and watch which flies. You’ll see the power of anchoring—give it a try this week.