It can be huge depending on your target market and the psychological nature associated with the product. Look at a pricing study it's quite amazing how much a few cents can make a difference. I always do psychological testing (a form of A/B testing) to determine the optimal price.
Ask HN: $4.99 VS $5 - Does odd number pricing work?
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Re: Ask HN: $4.99 VS $5 - Does odd number pricing work?
#12I've been wondering the same thing at a very similar price point too. I am thinking about a monthly subscription at either £3.99 or £4.99.
Some quick user feedback over the last 2 weeks, where I showed people a slide about what the service is and then asked them how much they would pay revealed that a subscription of £5 would be too much. Most people who said they would pay replied with 'I would definitely pay £2 of £3 for that'.
Obviously this is only relevant for my startup but I wanted to ask a few people how much they would pay without giving them options.
Now that I have a ballpark figure I'll ask different people how much they would pay, but this time give them options - ie, the £3.99 vs £4 thing.
Re: Ask HN: $4.99 VS $5 - Does odd number pricing work?
#13I've been wondering the same thing at a very similar price point too. I am thinking about a monthly subscription at either £3.99 or £4.99. Some quick user feedback over the last 2 weeks, where I showed people a slide about what the service is and then asked them how much they would pay revealed that a subscription of £5 would be too much. Most people who said they would pay replied with 'I would definitely pay £2 of…
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Re: Ask HN: $4.99 VS $5 - Does odd number pricing work?
#14I've been wondering the same thing at a very similar price point too. I am thinking about a monthly subscription at either £3.99 or £4.99. Some quick user feedback over the last 2 weeks, where I showed people a slide about what the service is and then asked them how much they would pay revealed that a subscription of £5 would be too much. Most people who said they would pay replied with 'I would definitely pay £2 of…
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Re: Ask HN: $4.99 VS $5 - Does odd number pricing work?
#15I've been wondering the same thing at a very similar price point too. I am thinking about a monthly subscription at either £3.99 or £4.99. Some quick user feedback over the last 2 weeks, where I showed people a slide about what the service is and then asked them how much they would pay revealed that a subscription of £5 would be too much. Most people who said they would pay replied with 'I would definitely pay £2 of…
Please let us know what you find.
Re: Ask HN: $4.99 VS $5 - Does odd number pricing work?
#16I've done this analysis but the study overall was faulty and in the end discarded for unrelated reasons, but we found 9.99 is better than 10, but best is 9.95.also that 59 is a bad number. You will get a lot more volume with 29 than with 34.95, or even, get this, 39.95. This was in non technical consumer space.
Re: Ask HN: $4.99 VS $5 - Does odd number pricing work?
#17I have a theory (just a theory) that .99 pricing was introduced to prevent in house employee theft.
If an item costs $10 the till worker can pocket the money without recording the transaction. However if the product costs $9.99 the customer is due 1 cents change so the item has to be checked into the till and the purchase recorded, making an employee theft traceable as the tills will not add up at the end of the day :)
Re: Ask HN: $4.99 VS $5 - Does odd number pricing work?
#18I have a theory (just a theory) that .99 pricing was introduced to prevent in house employee theft. If an item costs $10 the till worker can pocket the money without recording the transaction. However if the product costs $9.99 the customer is due 1 cents change so the item has to be checked into the till and the purchase recorded, making an employee theft traceable as the tills will not add up at the end of the day…
According to my grandmother, Hess (the department store) introduced odd pricing for that very reason when she worked there while in nursing school.
Apparently they had to send the receipt and the money via pneumatic tube back to the office where they would file the receipt, make change, and return it to the register. Customers would wait for their penny, helping to keep the employee from pocketing the cash and destroying the receipt.
Re: Ask HN: $4.99 VS $5 - Does odd number pricing work?
#19I have a theory (just a theory) that .99 pricing was introduced to prevent in house employee theft. If an item costs $10 the till worker can pocket the money without recording the transaction. However if the product costs $9.99 the customer is due 1 cents change so the item has to be checked into the till and the purchase recorded, making an employee theft traceable as the tills will not add up at the end of the day…
According to my grandmother, Hess (the department store) introduced odd pricing for that very reason when she worked there while in nursing school. Apparently they had to send the receipt and the money via pneumatic tube back to the office where they would file the receipt, make change, and return it to the register. Customers would wait for their penny, helping to keep the employee from pocketing the cash and destro…
Hmm, it turns out that if I give exactly the required amount, I provoke theft? :)