The 'Decoy Effect' and How to Use It in Sales

The decoy effect is a classic pricing strategy that subtly nudges buyers toward a preferred option.

Imagine offering two plans—basic and premium. Add a third, mid-priced plan that’s clearly less valuable than the premium, and suddenly the premium looks like a great deal. The decoy makes the premium plan feel like the smart, high-value choice.

This tactic works because people often don’t know what they want until they compare. The decoy simplifies that comparison, making the decision easier.

Used ethically, it’s not manipulation—it’s strategic framing. You’re helping the buyer see the value in what you recommend.