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Designing a Pricing Model That Uses Psychology to Drive Users Toward the Right Plan

UdharPay · Pricing Strategy · SaaS · Behavioural Economics · Pre-launch

Designing a Pricing Model That Uses Psychology to Drive Users Toward the Right Plan

70%

Revenue from Pro Plan

3

Pricing Tiers

$9

Pro Plan Price

7 days

Free Trial

The Challenge

UdharPay needed a pricing model that would attract small business owners unfamiliar with SaaS subscriptions — while generating sustainable revenue and discouraging low-margin free-tier users who consume support resources without converting.

How do you make ₹299/month feel like an obvious yes — not a reluctant maybe?

Our Solution

A three-tier model was engineered using specific behavioural economics principles:

STARTER
$5/mo
Lower anchor — makes Pro look like a bargain
PRO — MOST POPULAR
$9/mo
Below $10 barrier. Social proof badge.
BUSINESS
$19/mo
Upper anchor — makes Pro feel sensible
Psychology applied
$9 sits below the $10 psychological barrier. The "Most Popular" badge triggers social proof. Starter makes Pro's unlimited features feel like a bargain at $4 more. Business makes Pro feel sensible rather than expensive.

The Result

<5%
On Starter plan
70%
Projected on Pro
25%
Projected on Business

A 7-day free trial (no credit card required) replaced a permanent free plan — giving users the complete product experience before asking for payment.

Result: A distribution that maximises revenue while keeping the product accessible to the core small shop owner audience. 70% of projected revenue comes from a single plan — by design.

Tech Stack

StripeBehavioural Economics Framework

Project Info

Client

UdharPay

Industry

Pricing Strategy · SaaS · Behavioural Economics

Timeline

Pre-launch

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