Why You Should Take a Closer Look at That Price Tag Before You Buy

Its color, size and shape can affect your shopping decisions, a marketing consultant reveals

Lisa Lee Freeman,

AARP

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Published September 16, 2025

a person on a shopping cart shaped roller coaster going past sale signs and price tags

The color red, unusual fonts and type sizes, and “wow” words can all grab our attention when shopping.

Tara Jacoby

Why do even smart shoppers sometimes make not-so-smart choices? According to Nick Kolenda, it’s because of how our brains are wired.

Kolenda, a marketing consultant specializing in the psychology of pricing, says people can be swayed not just by the price of an item but also by how that price is presented. Just changing the price tag’s color or size can make you think you’re getting a better deal. As he says in his new book, Methods of Pricing, “Ultimately, price is perception.”

I talked to Kolenda about the effects price tags can have on shoppers. Here are 10 of the most fascinating triggers that can get you to spend money.

The color red

It grabs attention and seems to make shoppers less price-conscious. That’s especially true for men, who, according to studies, are drawn to the color; they find women more desirable when they wear red and prefer sports teams in red uniforms. “My take is that men see red and quickly assume that it indicates savings,” Kolenda says.

Unusual fonts

It takes more time and effort to read ugly-looking letters and numbers. That increased difficulty makes you stop and focus on the deal.

Type size

Small type can convey a good deal, Kolenda says. If the sale price is visually tinier than the original price, it seems to be lower. But large type can also grab your attention if it appears that the retailer is promoting a good product.

“Wow” words

Pairing descriptors with prices can also make you feel you’re getting a better deal. In one study, a “small $5 fee” seemed cheaper than a $5 fee. Other phrases that can have the same effect: “Only $9.99,” “Just 3 payments of $29” and “For a low price of $89.95.” When numbers are paired with text, Kolenda says, your brain merges the two, associating the price with the words.

Signs and banners

Even if an item isn’t on sale, using bright, colorful signage can boost sales. “Your brain assumes that because there’s a banner, there must be some type of special promotion that you should take advantage of right now,” Kolenda says.

Positioning

Prices are often placed on the left because studies show prices on the right feel heftier. In countries where people read from left to right, the left naturally becomes the “visual fulcrum.” Imagine there’s a diving board: The farther away the price is placed from the base, the more its weight will bend the board. Another contributing factor: When arranging quantities from low to high, left-to-right readers tend to place the lowest number on the left.

Anchoring

Our brain is biased toward the first number that comes into our head — the so-called anchor. When you see a price of $3.99, for example, you focus on the leftmost digit because that’s what you see first. Although the price is nearly $4, we anchor on the 3, making a difference of one penny feel like a dollar.

Reference prices

Advertised prices, suggested retail prices, past prices and competitor prices are all points of reference that our brains use to assess a deal. But they can be deceiving. If, for example, an item’s “original price” is inflated, a sale price seems more attractive, Kolenda says. Reference prices can also get you to overlook add-on charges. When you click on an airline ticket deal, your brain is likely to downplay fees you run into afterward for carry-ons and other extras. That’s because your brain is “still running the simulation” of paying the low price you first encountered, he says.

Tip screens

When a cashier swivels a screen around for you to pay and choose a tip amount, a private decision suddenly becomes a public one. “In a split second,” Kolenda writes, “you battle a flurry of questions: Should I tip? How much? Is that enough? Can other people see it? Will they think I’m cheap?” As a result, tip amounts are higher on visible devices, according to a new study Kolenda cites.

Coupons

They shift your attention from the price you’re paying to the amount you’re saving. “When you look at a price tag that says ‘$20 marked down to $15,’ your brain is focused on the final price in that scenario,” Kolenda says. “But if you have a $5 coupon, you’re focused on the amount you’re saving. That mindset is more pleasing.”

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