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This is false and a very basic mistake. Sometimes higher prices lead to more revenue, even with fewer units sold.
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.
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…
Registers that don't record receipts also don't record when it's opened. Even if they did, cashiers could forego opening it and provide their own pennies in order to pocket the 0.99 difference.
The .99 pricing is typical black & white smiling mid-atlantic accent gray flannel suit slicked hair over-jovial grinning 50s/60s mad men salesman stuff.
> They ran the experiment for two days. During this time, 241 people bought cheese. When they saw .00-ending prices, they bought cheese 44.1% of the time. But when they saw .99-ending prices, they bought cheese 51.2% of the time. > 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.
Earlier quoted context omitted.
The government-managed (or at least government-certified) software is not just China, but also large parts of the EU.
> government-managed (or at least government-certified Huge difference.
we were told to use specific software. and for sure that software is created by some company that may or may not be government owned. i don't know if there was any choice since, as is typical with foreigners, someone will just tell me their recommendation and not try to explain the differences between choices, unless they matter. ie: just go with the default.
i did have the impression that different regions use different software at least.
i expect that potentially in european countries there are multiple competitors for the same software, but i don't know that either.
so for all i know the amount of choice and control in china could be the same as some countries in europe.
Earlier quoted context omitted.
I thought it's notorious that sometimes they also don't know what they're doing, being carried by trends and vibes. "Half the money I spend on advertising is wasted; the trouble is I don’t know which half"
The advertiser who knows half his spend is wasted is the one who /does/ know what he's doing.
"Half the lines of code I write are useless, I just don't know which half." - an incompetent coder
"Half the time I spend on the phone is wasted, I just don't know which half" - an incompetent salesperson
"Half of my menu is inedible, I just don't know which half" - an incompetent restauranteur
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…
Earlier quoted context omitted.
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.
Hard to control for this though. How did other department stores do in 2012? I doubt e.g. Sears were putting out great numbers.
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…
That's why apple's pricing looks odd to me. Expensive prices minus one dollar