You might be surprised to learn that buying behaviour is shaped more by pricing than the factors we often associate with consumer purchases. In fact, pricing drives shoppers to make quick, intuitive judgements about whether a product is right for them. Those impressions come from context, such as the way prices are grouped, the offers they sit beside, and the cues that signal value. Even regional rules, such as Scotland’s limits on discounting alcoholic beverages, influence how operators present prices and how customers respond.

In both retail and hospitality, the most effective pricing strategies work because they align with how people naturally compare, prioritise, and justify their choices. When a price feels right, customers move forward without hesitation. When it feels out of place, they pause. Understanding this dynamic can help you steer customers towards the choices that feel natural to them, while also maximising profitability. Let’s take a closer look at how pricing works in both retail and restaurant (and pub) settings.

Retail Pricing Psychology

Retail environments are designed to shape how customers interpret value long before they compare actual prices, and every offer, product placement, and price point contributes to that impression.

Multi-buy promotions are a classic example. A “3 for 2” deal on crisps feels like an obvious win for the customer, even when pack sizes differ or the saving is minimal. Quite often, shoppers don’t check unit pricing, but rather they respond to the sense of getting an extra amount for free or for a reduced price.

Product placement reinforces the effect. Products at eye level are treated as the sensible, good-value choice, while items retailers would rather downplay are pushed to the top or bottom shelves where attention naturally drops. The layout becomes part of the pricing strategy.

Loss leaders add another layer. A low-priced everyday item draws people in, and once they’re inside, the higher-margin products entice them to spend more. For example, a supermarket might sell a loaf of bread or a pint of milk at a loss simply because those essentials bring people through the door. Once customers are inside, they tend to pick up higher-margin items, such as snacks, pre-made meals, toiletries, etc., which drive greater profit margins. What’s more, the initial bargain sets the tone, making the rest of the shop feel more affordable than it may actually be.

Restaurant and Pub Pricing Psychology

Hospitality pricing works best when it guides guests toward choices that feel rewarding, familiar, and a good value.

Starting with drink specials, set menus, and bundles create a clear sense of value before a guest even sits down. Getting two steaks and a bottle of wine for £30, for example, might have a lower margin but can attract more guests. Plus, the real return comes from à la carte add-ons: sides, desserts, premium drinks, and upgrades that feel like small, justifiable extras to guests.

Timing also shapes perception. Happy hour pricing encourages visits during quieter periods, while higher prices during peak hours reflect demand without feeling punitive. Guests typically accept these shifts because they align with expectations about when a venue is busy or quiet.

Menu structure adds another layer. Prices need to feel coherent across the page; a £10 burger placed next to £50 oysters creates a jarring contrast that disrupts decision-making. When prices follow a logical progression, guests gravitate toward mid-range items, which are often the most profitable.

How EPOS Systems Strengthen Pricing Decisions

The good news is that you don’t have to guess at which pricing schemes will work best and drive the most profit. EPOS data gives retailers and hospitality operators a clearer view of how customers respond to pricing in real conditions. Instead of guessing which offers work, you can use data to find buying patterns. Which multi-buys convert best? Which menu items naturally anchor the other menu items? Which promotions bring people in without eroding margin?

The same insight applies to placement and timing. Sales data highlights which products perform best at eye level, which dishes benefit from being framed as mid-range options, and when demand naturally rises or falls throughout the day. That makes it easier to adjust happy hour windows, refine à la carte pricing, or reposition items on shelves and menus.

EPOS systems also reveal the impact of loss leaders and bundle deals. You can track whether a discounted item actually drives additional spend, or whether a set menu reliably leads to profitable add-ons. Over time, these patterns help shape a pricing strategy that feels intuitive to customers while staying commercially sound.

If you’re looking for help using your EPOS system to drive greater profitability, Everything EPOS can help! Contact our EPOS specialists today to discuss your business and how to an EPOS system can make it more profitable.