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Pricing Compression: Visualization & Perception of Price

pricing compression May 02, 2022

Price is merely a perception. I’ve been fascinated by the psychology of pricing ever since I got into retail. Recently we’ve been digging into Nickko Lenda who is a self-proclaimed quirky guy obsessed with psychology and marketing. 

The visualization of pricing is a key factor that impacts customers' perceptions of value.

We’ve teased out a few points and some ways both retailers and brands can adjust their visualization of pricing as it relates to our industry. 

First, let’s consider the actual size of the font you use to display pricing. Did you know by showing pricing in small font your brain actually confuses visual size for numerical size?  

When your brain is rationalizing a price sign, you quickly and unconsciously review a bunch of reference prices to determine if that price seems too high or too low.

What does that mean for cannabis? Generally, the first price a consumer sees becomes a reference point for all other pricing as they move through their shopping journey.

If you have a higher-priced item consider reducing the font size of the highest-priced product within a product grouping and display them at the beginning of the customer journey.

On pricing cards, placement is key.  The top or on the left typically feels best. Why? Why? Because we usually start on the left and become the eye’s natural anchor point. Objects and numbers on the right pull down and feel heavier. Fascinating stuff.


  1. Show prices in smaller fonts on product cards
  2. Position prices near the top or left of product pricing cards


  1. When producing sell sheets for inventory buyers avoid bundling cheap and expensive products together. Buyers tend to average these vs. sum the values detracting from the overall value of the expensive item

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