People spend more when prices end in .99 (2018)
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People spend more when prices end in .99 (2018)
1–10 of 210 posts
Re: People spend more when prices end in .99 (2018)
#2Yes, that's why .99 was invented and survived.
Re: People spend more when prices end in .99 (2018)
#3It reminds them of 1999, objectively the greatest year in human history.
Re: People spend more when prices end in .99 (2018)
#4First job for all day AR glasses is to kill off this nonsense. Superimpose the rounded up price and blur the advertising out. Also add the markup so the customer knows that $2 Arizona iced tea was bought for 35c.
Re: People spend more when prices end in .99 (2018)
#5First job for all day AR glasses is to kill off this nonsense. Superimpose the rounded up price and blur the advertising out. Also add the markup so the customer knows that $2 Arizona iced tea was bought for 35c.
Actual first job for all day AR glasses will be to spam you with ads everywhere.
Re: People spend more when prices end in .99 (2018)
#6McDonald's knew about this many years before 2018
Re: People spend more when prices end in .99 (2018)
#7The psychology is fascinating. I would have thought that $1 feels smaller than $0.99. Two nines feels heavy. But despite what my mom would say, I’m surely wrong if everyone else is doing it.
Re: People spend more when prices end in .99 (2018)
#8First job for all day AR glasses is to kill off this nonsense. Superimpose the rounded up price and blur the advertising out. Also add the markup so the customer knows that $2 Arizona iced tea was bought for 35c.
I had always daydreamed of the inverse. A world where we get rid of road signs because the cars HUDs fill them in for us.
But there’s some grotesque likelihood to the idea that the world ends up positively littered and we use technology to filter it out.
Re: People spend more when prices end in .99 (2018)
#9I 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 your business.
Given the replication crisis is worst in these types of studies - the kinds of studies that beg to be the subject of TED talks - you have to wonder how reproducible these effects are.
Are we selling our integrity for bad science?
Re: People spend more when prices end in .99 (2018)
#10Actually, 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 total sales for the day ended in .56, it meant 44 (or 144) items were sold, no matter how many customers bought them.
This pricing strategy stuck around because it was really useful for running a business smoothly.