61–70 of 210 posts
I never like thinking of pricing in this way. When you price something as $9.99, you're signaling to your customer that you're trying to manipulate them. Whereas a flat $10 is honest. Integrity means a lot. The software I sell is priced in whole numbers. However, the magnitude of effect claimed in the article is huge. It's the difference between selling at cost and a huge margin. Between doing well and shutting down…
I am curious why. When I see the .99 style pricing I immediately round it to the closest number that makes sense to me. Also unless I am buying large quantity I do not really care whether it is $9 or $10
.99 is actually a pricing psychological strategy. Strangely, you won't often see this kind of pricing in offline retail stores, only during promotions. However, online and offline are different. When paying online, people's consumption psychology is more impulsive because you don't take out cash when paying; you just pay a number, and the money is deducted from your bank card. I still quite understand why online pric…
> Strangely, you won't often see this kind of pricing in offline retail stores, only during promotions
I think I see this whenever I enter a regular supermarket.
> When paying online, people's consumption psychology is more impulsive because you don't take out cash when paying; you just pay a number, and the money is deducted from your bank card
People overwhelmingly pay by card at actual shops and rarely use cash.
This may depend on the location of course.
Earlier quoted context omitted.
There's a lot underneath your comment. For instance, when you buy something and get a receipt - it is not for you the customer. It is to keep the employee honest. If there is no receipt, it might not have been entered into the cash register. Now with electronic payments a lot of this risk has gone away and receipts are becoming optional. Also, I remember some people telling me in their stores, the last digits of a pr…
in china, businesses are required to use government managed software that will automatically handle taxes and print on government issued receipt paper. for a while the receipt paper included a scratch field where consumers could win something in order to motivate them to demand a receipt. at least once we won more than we spent. some 2digit amount in dollars.
Actually, the .99 price-point started as a clever way to prevent theft, manage inventory, and keep track of sales. The idea was that pricing something at $1.00 might tempt a cashier to pocket the bill, but pricing it at $0.99 meant they’d have to open the register to give change, reducing the risk. Back then, most registers didn’t print receipts. This method also helped with inventory control. For example, if the tot…
There's a lot underneath your comment. For instance, when you buy something and get a receipt - it is not for you the customer. It is to keep the employee honest. If there is no receipt, it might not have been entered into the cash register. Now with electronic payments a lot of this risk has gone away and receipts are becoming optional. Also, I remember some people telling me in their stores, the last digits of a pr…
I never like thinking of pricing in this way. When you price something as $9.99, you're signaling to your customer that you're trying to manipulate them. Whereas a flat $10 is honest. Integrity means a lot. The software I sell is priced in whole numbers. However, the magnitude of effect claimed in the article is huge. It's the difference between selling at cost and a huge margin. Between doing well and shutting down…
In 2012, JCPenney launched their "Fair and Square" pricing campaign, which included adopting whole number pricing. This campaign was considered a significant failure and is attributed with causing a 20% decrease in sales.
The biggest ones in my mind, the ones my family had always played: they got rid of the game playing involved in buying during sales windows. This eliminated both the urgency to buy and the fun of feeling you were getting a deal other people weren't (this is all from memory I'm afraid)
Actually, the .99 price-point started as a clever way to prevent theft, manage inventory, and keep track of sales. The idea was that pricing something at $1.00 might tempt a cashier to pocket the bill, but pricing it at $0.99 meant they’d have to open the register to give change, reducing the risk. Back then, most registers didn’t print receipts. This method also helped with inventory control. For example, if the tot…
> This study not only confirmed that .99-ending prices lead to more revenue
Er, surely that depends on the rest of the price e.g. 1.00 v 1.99.
I never like thinking of pricing in this way. When you price something as $9.99, you're signaling to your customer that you're trying to manipulate them. Whereas a flat $10 is honest. Integrity means a lot. The software I sell is priced in whole numbers. However, the magnitude of effect claimed in the article is huge. It's the difference between selling at cost and a huge margin. Between doing well and shutting down…
Singalling is honest too, y'know. :)