Why these irrational prices actually work

This podcast episode explores the concept of irrational pricing strategies used by companies in various industries. It discusses examples from the bottled water industry, restaurants, retail brands like Costco, low-cost airlines like Ryanair, and other successful companies such as Starbucks and Red Bull. The episode highlights how companies tap into psychological biases and behavioral economics to set prices that may seem counterintuitive but lead to increased sales and profits. It emphasizes that pricing is not simply about the number on the tag but involves incorporating psychology and understanding how the brain interprets information. The episode concludes by suggesting that businesses should not be afraid to experiment with irrational approaches to pricing.