Welcome to WebmasterWorld Guest from 54.147.158.215

Forum Moderators: buckworks

Message Too Old, No Replies

The Psychology of Prices

What numbers sell best

     
5:23 pm on Jun 30, 2008 (gmt 0)

Senior Member

WebmasterWorld Senior Member 5+ Year Member

joined:June 25, 2007
posts:1073
votes: 5


Over the weekend I recently recalculated all of the prices for our products. Some prices or shipping amounts actually went down after being re-calculated, but most went up. Some went up a very small amount, but looking back at it now, I'm rethinking whether I did the right thing or not... For about three years a number of our popular products were 68.95. I now raised them to 69.95 to try and make up for inflated costs. Obviously this isn't a big change, but I'm wondering what kind of psychological effect a change like this has on the customer. I think looking at the price 69.95 just looks a lot closer to $70 than 68.95. This sounds silly, but we all know that these kinds of things do have an impact on how people think. I don't think many people are stupid enough to believe there's a big difference between the two... I just think that in the back of people's minds, most realize that they're buying something they really don't need in the first place. When you have pricing like that, I think it helps the practical part of your mind rationalize it a little more easily. 'Hey, it's just $60... That's not bad'. Even though the logical part of your mind knows it's really $70.00.

At any rate... I'm thinking that if the difference between 68 and 69 means less people buying, it's maybe not worth the extra buck. Or maybe I'm over-thinking it. Just curious what other people feel about this kind of thing?

Dave

2:45 am on July 1, 2008 (gmt 0)

Preferred Member

5+ Year Member

joined:Jan 19, 2007
posts:487
votes: 0


As a old B&M retailer I can tell you that it shouldnt make any difference.

Traditonally the $0.95 is accepted by the consumer. We use to price products at $ 10.00 and $9.99. The $9.99 sold twice as much as the comparable $ 10.00.
Just 1 cent less and we doubled the sales. Consumer hear/see the $9 in a $9.99
price and the $10 only in a $10.00 price. Go figure!...KF

9:29 pm on July 27, 2008 (gmt 0)

Junior Member

10+ Year Member

joined:July 17, 2003
posts:60
votes: 0


I read that a site put this 'price psychology' to the test with a $99, $97, $95 price tag. The original tag was $95.

The $99 price tag outsold the original $95 tag but a factor of 2.

The $97 price tag outsold the original $95 tag buy a factor of 5.

I havenít looked into this too deep, but this might only work with a certain type of product and target audience. Probably mostly the ebook 'work from home', 'get ritch online', 'seo' types.

I also read that $9.99 vs $10.00 mostly works in America and not in the rest of the world. I think it was compared to Germany in the article.

[edited by: TowerOfPower at 9:30 pm (utc) on July 27, 2008]

8:15 pm on July 28, 2008 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member

joined:May 6, 2005
posts:670
votes: 0


Is there any truth to the saying that consumers prefer an odd-numbered price? For example, $9.95 versus $9.96? If so, any ideas why?
9:27 pm on July 28, 2008 (gmt 0)

Junior Member

10+ Year Member

joined:July 17, 2003
posts:60
votes: 0


To myself the odd number is more focused and solid. The even number I have to think about when I see it. It's almost like I pause on it, but not in a good way.

$9.95 verse $9.96

Take a look at the above, and then take a look at it again, see how you're kind of comfortable with the 9.95... You look at it very quickly, but when you move on to the 9.96 you pause on it.

Maybe I've been psychologically conditioned to accept the odd number since this is what I see most often. Other cultures will respond differently.

[edited by: TowerOfPower at 9:30 pm (utc) on July 28, 2008]

12:32 am on July 29, 2008 (gmt 0)

Senior Member from US 

WebmasterWorld Senior Member lorax is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month

joined:Mar 31, 2002
posts:7575
votes: 0


>> you're kind of comfortable

I don't think it's that I'm comfortable with it. I think it has more to do with that I'm NOT comfortable with it but it's so insignificant that I don't want to waste brain power on it.

1:13 am on July 29, 2008 (gmt 0)

Junior Member

10+ Year Member

joined:July 17, 2003
posts:60
votes: 0


>>I think it has more to do with that I'm NOT comfortable with it but it's so insignificant that I don't want to waste brain power on it.

I think you might just be on to something here.

[edited by: TowerOfPower at 1:13 am (utc) on July 29, 2008]

 

Join The Conversation

Moderators and Top Contributors

Hot Threads This Week

Featured Threads

Free SEO Tools

Hire Expert Members