So far not sufficient amount of data in order to make a precise conclusion but some hints.
First, sedo charges the seller $50 ( i believe) for an auction so bids arent lower than 60.
Why the so large dips inbetween 70 to 100, 100 to 150, 160 to 190, 200 to 225, 250 to 300, 500 to 1000? Because the bidders think that the amounts inbetween, feel as "low" offers, relatively?
Flip the coin and see that is correlates to "cheap" pricing? Very few bids at -90, -190 and 290 and then something happens at 500.
Does the 5* number suddenly feel like being a "high" very good bid? And is therefore 4 considered as low, psychologically, and maybe in as high effect as the 9?
Would it then be smart for a seller to put the prices at 80-90, (110)-190, (210) - 290, 320 - 340, 360 - 390, 410 to 440 and even 460 to 490? And (600) - 900 and so on? And never at 500*?! And in order to stick out, use prices that few others have, or not? Like 420 (but not 425 since the 5 makes it "higher") (makes a bidder to go down "only" to 400(?)), 480, 800, 900, 1800, 1900 and so on.
As we all know, pricing psychology implies that you are stupid enough to be tricked to believe that 9.99 is a lot better than 10. Here in Sweden the prices especially in supermarkets are priced that way, 5.95, 12.95, 19.95, 99, 169, 199 and so on. But I think that many today associate the *9-prices also as being junk prices.
If I have a product with better features than competitors, I want to focus at people looking for quality. If they would see my product for 195 or 199, some of them may get the feeling that I want to trick them ie I am not serious. But if I lower the price to 180 it is in a decent way under 200 yet not far from, bur far enough for a buyer to instead perceive that the price is a this-is-a-serious-price-not-just-a-price-to-fool-you. And that I would earn more than if I would sell at 190, 195 or 199. (Maybe I could make another post of this in another topic section?)
[edited by: Webwork at 2:28 pm (utc) on April 22, 2007]
[edit reason] Tidying up. [/edit]
