How the Contrast Effect in pricing makes You Think Small Add-Ons Are a Steal!

Have you ever walked into a store to buy something big, like a phone, and then ended up paying for additional items that you didn’t really plan on? Maybe a screen protector for ₹1500 or a phone cover for ₹800? If you’re nodding, you’re not alone. It’s a scenario that happens to most of us, whether we’re buying a new phone, laptop, or another big-ticket item.

Here’s the interesting part: your brain is playing tricks on you.

Let’s break this down. You’ve just spent ₹30,000 on a shiny new phone. Now, when the salesperson offers you a ₹1500 screen protector or a ₹800 phone cover, it doesn’t feel like much, right? In fact, it almost seems like a small price to pay to protect your shiny new toy. But if you look at the same items online or in another store, you’ll probably find them for half the price. So, why does ₹1500 for a screen protector feel worth it when compared to ₹30,000?

It’s because your brain is wired to think in contrast, not absolute values.

Here’s how it works: when you spend a large amount (like ₹30,000 on a phone), smaller amounts (like ₹1500 and ₹800) seem tiny in comparison. Your brain uses this contrast to make decisions quickly, almost without thinking. This is called the Contrast Effect — when our perception of value is influenced by what we’ve already seen or spent. So, even though ₹1500 might seem expensive on its own, it feels like a bargain when compared to ₹30,000. The store knows exactly how to use this to make you spend more than you planned!

Now, let’s flip the script and consider a different scenario. Imagine you’re at a grocery store, picking up a ₹50 packet of biscuits. At checkout, you spot a ₹40 chocolate bar. Suddenly, ₹40 feels like a lot, right? It doesn’t matter that you’re already spending ₹50 on biscuits — the prices are close enough that the difference stands out. You might hesitate before adding the chocolate bar to your cart because the contrast between ₹40 and ₹50 feels significant.

This is the same effect, just with smaller numbers. The closer the prices are, the more your brain notices the difference. But when there’s a huge gap (like between ₹30,000 and ₹1500), your brain brushes off the smaller amount as insignificant.

The Takeaway?

Next time you make a big purchase, take a moment to pause and think about the smaller add-ons being offered. Don’t just evaluate them based on how much you’ve already spent. If you step back and think about them on their own, you might realize that they’re not as great a deal as they initially seemed.

So, whether you’re buying a phone, a car, or even groceries, be mindful of how contrast plays into your decisions. Your wallet will thank you later! 🧠💸