The encyclopedia
Pricing

The Decoy

The effect

"One option suddenly feels like the obvious smart choice."

The method

Add a third option that's strictly worse than the option you want them to pick. The target plan now looks like a no-brainer next to its inferior twin.

Grey hat
5/10
Most common usage on the angel→devil scale
The ethics spectrum

Same hack. Three very different choices.

White hat

Genuinely useful tier that some customers do choose; comparison is honest.

Grey hat

Decoy tier exists only to flatter the middle option.

Black hat

Misleading feature comparison that hides what the cheaper plan actually includes.

The template

A formula you can steal

Plan A (cheap, limited) · Plan B (target, great value) · Plan C (decoy: priced near B, gives less).
Spotted in the wild

Where you've already seen this

  • The Economist's famous Web/Print/Web+Print pricing where Print alone matched the bundle.
  • Movie theaters' small/medium/large popcorn where medium is priced two cents below large.
  • SaaS pricing where the second tier is $79 and the third is $89 with 5× the seats.
When to use it

When you have a clear plan you want most customers to pick and feature differences that can be honestly demonstrated.

When NOT to use it

When the decoy hides material limits the customer only discovers after paying. That's bait-and-switch, not pricing strategy.

The 5-minute practice

Try the trick today

Show your pricing page to five non-customers. Ask which plan they'd pick and why. If 'middle' wins for the right reasons, your decoy is doing honest work.

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See it in action

1 teardown use this trick