You should always have 3 pricing options for your product!

Here's why

Let's start with a simple to understand example

Let's say you're buying a cone from an ice cream shop, and there you have the option to get either:
small cone for $4
-or-
Large cone for $10

If you saw this, you would most likely go for the small cone, cause $10 seems too much

But now, what if we add a 3rd pricing option, a medium-size cone for $8.

The menu becomes:
Small - $4
Medium - $8
Large - $10

Now all of a sudden the small feels like it won't be enough, and $10 doesn't seem that much anymore.

But you're prob not gonna buy the $8 cause....

...If you're gonna spend $8 compared to $4, might as well add in $2 more and buy the large!

However, in another example, you might not actually buy the medium, It's all based on how much you charge for it!

Let's say you were selling soap. You sell 2 bottles of soap, one for $10, and another for $60.

Well, the $60 one just seems overpriced, so people would buy the $10 bottle.

However, introduce a 3rd bottle at the price of $25, and the same effect happens again...

...but this time there's a slight difference. This time the middle product isn't meant to convenience you to buy the largest, most expensive product.

It's meant to make the small bottle seem like it's too cheap, and use the $60 bottle to present itself as the best deal.

Now ik the examples used here were physical products, but this works for digital products too, and even subscription-based services!

Here's a paper that tries this out irl and goes more in-depth: http://bear.warrington.ufl.edu/brenner/mar7588/Papers/shafir-reasonbased-cog1993.pdf

Hope you found this thread useful