And, as a customer on other websites, I hate having to pay $14.99 instead of $15.00.
Now, as I am looking at pricing my shirts.. I'm wondering.. will someone be more likely to buy a tshirt priced at $14.99 instead of $15.00? Its really, only a penny.. But, does it really make that much of a difference?
My wife always tells me she paid $300 for something when actually it cost $399, (that is $400 in my book). I think that psychologically it does work, at least on larger ticket items.
I agree that it does work, even at lower prices. Even though you know it's not that big a difference, it just looks better. I'm working on prices for my tees and they'll definitely all have .99 on the end.
I hate the idea that the .99 plays on peoples stupidity (imo) everyone understands you round it up but it is a retail rule. In fact, I think it looks a bit unprofessional NOT to do it which is weird, but it's just the way it is.
My advice with this is don't use .99 use something in the 90s that sets you apart, like .97 or .93. People expect you to do this as a retailer so make it a bit more memorable and don't be a dollar store.
i like to pay that extra penny. i'd rather give someone $10.00 and get no change vs. paying $9.99 and having to vacuum another penny under the driver seat of my car when i go wash it...
I use to work at Circuit City (bankrupt) and there was a functionality to XX.99.
.95
.98
.99
All meant something different. Like current stock, clearance, open box....etc.
Quote:
Originally Posted by degaje
My wife always tells me she paid $300 for something when actually it cost $399, (that is $400 in my book). I think that psychologically it does work, at least on larger ticket items.
if i'm not mistaken, it actually originated from woolworth. it was imposed so that the cashiers would not pocket the money for goods sold. they actually had to ring up the register to give the penny back to the customer.
i know that that is not the case now adays as most people have credit/debit cards and the like. i do think it plays on the mind tho. easier for a kid to tell his mom that it costed $13 than the actual $13.99 plus shipping.
There have been many studies that show a fruggle shopper will buy and item priced at $19.99 yet they will pass on the exact same item when priced at $20.00.
My advice with this is don't use .99 use something in the 90s that sets you apart, like .97 or .93. People expect you to do this as a retailer so make it a bit more memorable and don't be a dollar store.
There are a couple of problems with this - one is the one I mentioned in the other thread: certain cent numbers are code, and a lot of people know that. You might not want to be putting the clearance stock idea into people's minds.
The other is that it's a big box commercial thing to do. Not necessarily a problem, but if you're trying to give off the vibe of small and independent then that kind of pricing undermines your image.
A flat price might not give you the psychological benefit of people thinking it's cheaper, but it might give you the psychological benefit of people thinking you're plain spoken and honest. Since .95 and .99 are the norm, .00 can now be making a statement.
That's true. I guess You can have Featured product or special product as Flat 18,20,25$ & Regular price can be something like 17.71 or 18.81, 22.22 ...unique? Just an thought. 22 cents their might not make difference in most case(switch to 23.32 Free shipping in that case)
NiL
Quote:
Originally Posted by Solmu
There are a couple of problems with this - one is the one I mentioned in the other thread: certain cent numbers are code, and a lot of people know that. You might not want to be putting the clearance stock idea into people's minds.
The other is that it's a big box commercial thing to do. Not necessarily a problem, but if you're trying to give off the vibe of small and independent then that kind of pricing undermines your image.
A flat price might not give you the psychological benefit of people thinking it's cheaper, but it might give you the psychological benefit of people thinking you're plain spoken and honest. Since .95 and .99 are the norm, .00 can now be making a statement.
$XX.99 effect 
