By: Dr. Rebecca Johannsen – Your Expert Behavioral Economist & Marketing Strategist

Black Friday isn’t just a date on the retail calendar. It is a massive, collective psychological event.

When a customer opens their laptop or walks into a store on the day after Thanksgiving, their brain is functioning differently than it does on a random Tuesday in March. They are primed by weeks of anticipation, flooded with dopamine at the prospect of a “win,” and driven by a deep-seated, biological fear of missing out.

For small business owners, this atmosphere can feel terrifying. You likely feel the pressure to slash your prices to compete with the Amazons and Walmarts of the world, fearing that if you don’t offer 80% off, you won’t exist.

But here is the secret that behavioral economists know: You don’t need to race to the bottom.

Winning Black Friday isn’t about having the lowest price; it’s about having the smartest offer. By understanding the behavioral economics behind why people buy—specifically the mental shortcuts their brains take under pressure—you can craft deals that protect your profits while feeling absolutely irresistible to your customers.

The Science: What Happens in the Buyer’s Brain?

To understand how to price your products, you first have to understand the “caveman brain” that takes over during a sale.

When we shop during a high-stakes event like Black Friday, our logical, slow-thinking brain tends to step aside, allowing our emotional, fast-thinking brain to take the wheel. This shift relies on specific mental heuristics—shortcuts we use to make decisions quickly.

The most powerful of these are scarcity and urgency. Humans are hardwired to value what they cannot have. When resources are limited or time is running out, we stop overthinking. We act because our biological survival instinct kicks in; we don’t want to be left behind. If you simply lower a price without a deadline or a quantity limit, you haven’t created a deal; you’ve just changed a number. To trigger the buy, the customer must feel that the opportunity is fleeting.

This is closely tied to Loss Aversion. Nobel Prize-winning research tells us that the psychological pain of losing is about twice as powerful as the pleasure of gaining. On Black Friday, the customer’s fear isn’t losing money—it is the pain of losing the deal. When you frame your marketing around what they stand to lose by waiting, you are speaking directly to that instinct.

But how do customers know if a deal is actually good? They use Anchoring. A price is never high or low in isolation; it is only high or low compared to a reference point. If you simply say a product is $150, the customer has no context. But if you show them that the total value is $500, suddenly $150 feels like a steal. The initial number sets the anchor, and everything that follows is judged against it.

The “Black Friday” State of Mind

During this weekend, consumers enter a state known as Transaction Utility. This means they aren’t just deriving value from the product they buy; they are deriving value from the act of getting the deal itself.

This creates a unique “Shopping Momentum Effect.” It is difficult to get a consumer to open their wallet for the first time. But once they make that first purchase—once the psychological dam breaks—it becomes significantly easier to get them to add a second, third, or larger purchase.

This is why bundles often outperform single-item discounts. A 20% discount on a $20 item ($4 off) is mathematically fine, but emotionally boring. However, a “Mega-Bundle” worth $500 selling for $199 feels like a jackpot. The customer gets the rush of a massive “win,” and you get a significantly higher average order value.

Building Your Tactical Framework

So, how do you translate this theory into a pricing strategy? You should view your offer structure like a well-designed meal, rather than a random assortment of discounts.

Start with your “Hero Offer.” This is your main event. If you are a service business, resist the urge to discount your time, as that devalues your expertise. Instead, create a package—perhaps “Buy 3 Sessions, Get 1 Free.” If you sell digital products, bundle your best-sellers. If you sell physical goods, pair your high-demand items with slower-moving inventory to clear your shelves while keeping the perceived value high.

Once they commit, offer a “Sweetener.” This is also known as an order bump. It happens right at the checkout. Because the customer has already decided to buy, the “pain of paying” is temporarily suspended. A low-ticket item—like a $27 workshop or a $17 template—feels negligible to them at this moment, but it can increase your revenue by 15-30% without requiring any extra marketing effort.

Finally, consider the Upsell. After the purchase is confirmed, offer the next logical step. If they just bought your beginner course for $97, offer them a one-time chance to upgrade to the masterclass. They are already in the “yes” mindset, making this the highest-converting moment in the customer journey.

Choosing the Right Deal Type

The way you present the numbers matters just as much as the numbers themselves.

If you are debating between a percentage discount or a dollar-off discount, follow the Rule of 100. If your price is under $100, use a percentage (30% off sounds bigger than $9 off). If your price is over $100, use a dollar amount ($50 off sounds more tangible than 15% off).

You should also lean into Charm Pricing. We read from left to right, which means our brains process $39.00 as “thirty-something” and $40.00 as “forty.” In the digital space, prices ending in a 7 (like $47 or $97) are currently converting exceptionally well, likely because they signal a calculated, specific value rather than a generic, rounded discount.

The Art of the Copy

You can have the best pricing strategy in the world, but if you don’t frame it correctly, it won’t land. Your writing needs to bridge the gap between logic and emotion.

Use the “Anchor and Twist” method. Start by validating the high value: “Normally, clients pay $1,000 for this level of access.” Then, deliver the twist: “But for Black Friday, we’re doing something we’ve never done before.”

Then, ensure you are stacking the value. Don’t just list the features; list the worth of those features. “You’re getting the Course ($297 value), the Workbook ($47 value), and the Community Access ($97 value). That’s $441 in total value… for just $97.” This forces the logical brain to see the math while the emotional brain gets excited about the savings.

Avoiding the Trap

As you finalize your plans, be wary of the most common mistake small business owners make: Discounting too deeply.

If you offer 70% off your core service, you aren’t just losing money; you are training your customers to never pay full price again. Instead, focus on adding bonuses—digital goods, extra time, or exclusive access—that have a high perceived value to the customer but a low cost to you.

And please, keep it simple. A confused mind says no. If you offer twenty different items on sale, your customer will freeze and leave. Offer one Hero Deal, perhaps one bundle, and guide them clearly to the checkout.

Black Friday is chaotic, but it is also the single best opportunity of the year to acquire new customers who will stay with you for the long haul. Don’t let the big retailers intimidate you. They can win on volume, but you win on connection, trust, and smart psychology. Plan your offer, set your anchors, and go get the sales.

A Tactical Pricing Framework for Small Businesses

Stop guessing. Use this framework to build your offer hierarchy.

Step 1: Choose Your Primary “Hero” Offer

This is the main event.

• Service Businesses: Do not discount your time. Instead, create a special package. Example: “Buy 3 Sessions, Get 1 Free” (Value Add) rather than “25% off a session.”

• Digital Products: This is your playground. Bundle your best-sellers.

• Physical Products: Focus on moving slow-moving inventory by bundling it with high-demand items to clear shelves.

Step 2: The “Sweetener” (Order Bump)

This is a low-ticket offer presented at checkout.

• Psychology: They already have their credit card out. The “pain of paying” is gone.

• Example: A $27 workshop, a $17 template, or expedited shipping.

Step 3: The Upsell

After the purchase is confirmed, offer the next logical step at a one-time-only price.

• Example: “You just bought the Beginner Course for $97. Want to upgrade to the Masterclass for just $100 more (normally $297)?”

Which Deal Type Converts Best?

Use this guide to select your offer structure based on your goals.

1. The Rule of 100 (Dollar-Off vs. %-Off)

• The Rule: If your price is under $100, use a Percentage (e.g., “30% off” sounds bigger than “$9 off”).

• The Rule: If your price is over $100, use a Dollar Amount (e.g., “$50 off” sounds more tangible than “15% off”).

2. The “Value Stack” Bundle

• Why it works: It makes price comparison impossible. Customers can’t price-check a unique bundle against Amazon.

• Strategy: List every component with its individual value, sum it up, then slash the price.

  • Course A ($200) + Templates ($100) + Coaching Call ($300) = Value $600. Your Price: $197.

3. Buy X, Get Y (BOGO)

• Why it works: The word “Free” is the most powerful word in marketing. It triggers irrational excitement.

• Strategy: “Buy our Signature Candle, Get a Wick Trimmer FREE.” This protects the value of the main product while adding urgency.

4. Tiered Pricing (The Goldilocks Method)

• Why it works: It uses Price Contrast.

• Strategy:

  • Tier 1 (Basic): $49 (The “Meh” option)

  • Tier 2 (Best Value): $97 (The Hero Offer – includes bonuses)

  • Tier 3 (VIP): $497 (The High Anchor – makes the $97 look tiny)

Psychology-Backed Copywriting Formulas

You can have the best deal in the world, but if you don’t frame it correctly, it won’t sell. Steal these formulas:

1. The Anchor & Twist“Normally, clients pay $1,000 for this level of access. But for Black Friday, we’re doing something we’ve never done before…”

2. The Scarcity Slam“We only have 50 bundles printed. Once they’re gone, this offer page comes down. No exceptions.”

3. The Value Stack (Logic to Emotion)“You’re getting the Course ($297 value), the Workbook ($47 value), and the Community Access ($97 value). That’s $441 in total value… for just $97.”

4. The “Future Pace” (FOMO)“Imagine waking up in January with your entire strategy already done. Or, you can let this deal pass and pay full price later. The choice is yours.”

Common Pricing Mistakes (And How to Fix Them)

Mistake #1: Discounting Too Deeply If you offer 70% off your core service, you devalue your brand.

• Fix: Keep the price high, but add bonuses (digital goods, extra time, previous recordings) that have high perceived value but low cost to you.

Mistake #2: “Analysis Paralysis” Offering 20 different items on sale.

• Fix: A confused mind says no. Offer one Hero Deal and perhaps one bundle. Keep it simple.

Mistake #3: Ignoring the Anchor Saying “Get this for $50!”

• Fix: Always say “Was $100, Now $50.” The brain needs the “Was” to appreciate the “Now.”

Your Black Friday Checklist

Print this out. If you can check every box, you are ready to launch.

• [ ] Is there a clear Anchor? (Did I show the “Regular Price” or “Total Value”?)

• [ ] Is there Scarcity or Urgency? (Is there a deadline or quantity limit?)

• [ ] Is the math simple? (Does the deal make sense in 3 seconds?)

• [ ] Have I added a Sweetener? (Bonuses to increase the perceived value?)

• [ ] Is the checkout path smooth? (Test your links!)

• [ ] Is my copy focused on the “Win”? (Am I selling the result, not just the product?)

A Final Word to the Business Owner

Black Friday can be chaotic, but it is also the single best opportunity to acquire new customers who will stay with you for years.

Don’t let the big retailers intimidate you. They can win on volume, but you win on connection, trust, and smart psychology.

Plan your offer today. script your emails, and set your anchors.

You have the tools—now go get the sales.