Default-priced

Describes goods or services offered at a price that applies unless the buyer actively chooses a different, usually more expensive, option. This pricing strategy often leverages the principle of 'choice architecture' to encourage consumers to select the default offering. This contrasts with a situation where the customer must select an option or pricing tier explicitly. default-priced items are often designed for convenience and can subtly influence purchasing decisions, potentially leading to increased sales for the default option, whether intentionally or not. The term underscores the strategic setting of a base price, representing the path of least resistance for consumers.

Default-priced meaning with examples

• The streaming service's basic package was default-priced at $9.99, offering a vast library. Many users, preferring convenience, never explored alternative, more premium, and more costly plans. This pricing strategy significantly boosted subscriptions to this default plan, proving its effective design. Only those wanting certain extras explored alternative offerings to enhance streaming needs.
• The car rental agreement had a default-priced insurance plan. Most renters, focused on getting on the road, did not investigate cheaper, alternative options. This approach ensured maximum insurance purchases due to its simplicity and convenient format. This default-priced plan, while sometimes not the most cost-effective, was still preferred by many rental clients.
• Airlines used default-priced baggage fees; standard carry-on was free, checked baggage fees were charged. Few passengers opted to forgo the convenience of checked luggage. These fees served as a revenue stream, which was designed to be conveniently managed. This strategy capitalized on passengers' inclinations for convenience.
• The software came with a default-priced annual subscription of $100. Many businesses started and continued with it, without reviewing competing offers, due to its initial ease and setup. The convenience generated revenue over time due to customer's choice and simplicity. This created a simple path to continued user subscriptions
• Many websites implement default-priced shipping options; 'standard shipping' is often offered at no cost. Customers often select this option, which results in slower delivery times. This pricing offers a convenient and user-friendly experience for customers. This strategy makes a lower upfront cost, making a purchase more attractive.