Earlier quoted context omitted.
There's a burrito chain in the northeast US called Boloco, and while their prices seem pretty arbitrary, all of the post tax prices are always whole dollar amounts. It's the only place I know of in Boston that does that.
As a Brit, I was amazed first time I went to the States with this idea of shops not putting the actual price you're going to pay on stuff. I don't care how much money the shop is getting, as opposed to the state. All I want to know is how much money I'm going to be spending to get the thing, and I don't want to have to do calculations to work it out.
A Penny Saved: Psychological Pricing
41–46 of 46 posts
Re: A Penny Saved: Psychological Pricing
#42I always round prices up that end with .9x. On Kickstarter when prices are $79 I count them as $80. Saving me that minor calculation makes me more likely to buy something, it simply removes an annoyance. Is that really un-normal?
I'm not sure. I also do this, but maybe something is happening, even to us, subconsciously. Maybe the effect goes away if we walk away and remember the price as $80, though.
Re: A Penny Saved: Psychological Pricing
#43Re: A Penny Saved: Psychological Pricing
#44That's the Anchoring Effect. It's not just about 3.99 appearing cheaper than 4.00. It appears cheaper than 3.00 because the 9's make the 3 look small. $3.29 appears especially cheap. The cheapest-looking price point between $3 and $4 is probably $3.19 or $3.29. ($3.09 isn't as cheap-looking, because the '0' adversely anchors the 3. There is a trade-off in the appearance of simplicity, of course. If you're selling car…
Compare http://www.economist.com/news/briefing/21588057-scientists-t...
Re: A Penny Saved: Psychological Pricing
#45I always round prices up that end with .9x. On Kickstarter when prices are $79 I count them as $80. Saving me that minor calculation makes me more likely to buy something, it simply removes an annoyance. Is that really un-normal?
I also round them up, but in doing so, it makes me think about the fact that the price doesn't reflect the 'value' of the product: If they hadn't rounded it to ₤X.99, would it have been more or less? How much of that is profit?…
Re: A Penny Saved: Psychological Pricing
#46Does that mean they won't allow it in the future?