A/B Testing Idea #107 - Demonstrate the per day cost of monthly or yearly plans

Tactic_Demonstrate the per day cost of monthly or yearly plans


Rather than only showing the yearly or monthly cost of a subscription, it can be effective to also display the daily equivalent.

Studies have shown that we use a first piece of information as an anchoring point for any subsequent information we receive. Displaying the daily equivalent first or more prominently will provide your customers with a low anchor price which will have more impact on their perception of the product's value than any following prices.

It is also a simple yet effective way to lower people's perception of the cost. Displaying the daily equivalent of a monthly or yearly cost places emphasis on a smaller price which leads people to perceive it as cheaper or better value even though it is technically the same price.

Inspired by Nick Kolenda 


  • Perceived Value Pricing (Lee & Zhao, 2014; Poundstone, 2010; Mazumdar; Raj; Sinha, 2005; Thomas; Simon; Kadiyali, 2007)
  • Psychology of Consumption (Gourville, 2002)
  • Anchoring Effect (Tversky & Kahneman, 1974)

The Research

Perceived Value Pricing

Perceived Value Pricing explains how our perceptions of a price and its value can be altered depending on how it is presented to us.

Psychology of Consumption

The Psychology of Consumption explores the fact that when someone actually makes regular use of the product or service they’ve bought then they’re much more likely to make a repeat purchase.

Anchoring Effect

The Anchoring Effect describes the way in which people utilise the first piece of information they receive as a point of reference for making judgements about subsequent pieces of information.

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