Decoy pricing and the Economist example

In this episode of Mostly Growth, Kyle Poyar and CJ Gustafson unpack the pricing models hiding in plain sight. They break down razor-and-blade economics, hardware plus software, waitlists, free samples, luxury and Veblen goods, decoy pricing, two-part tariffs, and price anchoring. Using examples from Costco to SaaS and AI, they show how pricing psychology drives acquisition, retention, and willingness to pay.

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SPONSORS:

Tropic is an intelligent spend management solution that consolidates your spend data and processes into one unified offering, enabling insights and decisive action. From spotting hidden optimization opportunities to automating painful procurement workflows and giving you the best market data to turn vendor negotiations in your favor, Tropic combines smart insights with real human expertise to keep you ahead of the curve. Visit https://www.tropicapp.io/mostlymetrics to learn how.

HockeyStack is an AI platform for modern go-to-market teams that unifies sales, marketing, and customer data into a single system of action. With AI agents that prospect accounts, support reps, improve forecasting, and automate what’s already working, HockeyStack helps teams move faster without guessing. Trusted by companies like RingCentral, Outreach, ActiveCampaign, and Fortune 100 teams—learn more at https://www.hockeystack.com

RightRev is an automated revenue recognition platform built for modern pricing models like usage-based pricing, bundles, and mid-cycle upgrades. RightRev lets companies scale monetization without slowing down close or compliance. For RevRec that keeps growth moving, visit https://www.rightrev.com

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LINKS: 

Mostly Metrics: https://www.mostlymetrics.com

CJ on LinkedIn: https://www.linkedin.com/in/cj-gustafson-13140948/

Growth Unhinged: https://www.growthunhinged.com/

Kyle on LinkedIn: https://www.linkedin.com/in/kyle-poyar/

Slacker Stuff: https://www.slackerstuff.com/

Ben on LinkedIn: https://www.linkedin.com/in/slackerstuff/

https://www.growthunhinged.com/p/plg-vs-microsoft

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RELATED EPISODES:

Pricing in the Real World: Babies, Bots, and Billing

https://youtu.be/T1cjFSZR0k0

The CFO Case for Probabilistic Forecasting With AI | Bruno Annicq

https://youtu.be/dfjSjPAXEEk

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TIMESTAMPS:

00:00:00 Snowstorm banter

00:03:28 Setting up the episode: real-world pricing models

00:04:09 Razor–razor blade pricing explained

00:07:45 Applying razor–blade pricing to SaaS and hardware

00:08:59 Hardware + software razor–blade tradeoffs

00:09:51 Sponsors — Tropic | HockeyStack | RightRev

00:13:31 Waitlists as a growth and pricing lever

00:19:39 Free samples and freemium models

00:23:23 Luxury pricing, exclusivity, and Veblen goods

00:27:29 Luxury tiers in tech and professional services

00:29:52 Decoy pricing and the Economist example

00:32:54 Two-part tariffs and membership economics

00:37:05 Price anchoring and steering buyers to the middle

00:38:46 Event-driven price increases tied to new value

00:41:26 Outro

#MostlyGrowthPodcast #PricingStrategy #PricingModels #SaaSPricing #Monetization