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The Drake | Is it best to price items so that they end in .99 cents, .95 cents, or an even dollar? |
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Lilliput1212
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There was a study that said, people would buy something for 1.99....everytime over something 2.00...according to the study, in worked better with 99 than 95.... |
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spunk113
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Depends on the scale of your enterprise. If your business is pretty small (i.e. flea market type size) stick with even numbers--it's easier to do the math. However, if you have a large scale operation (i.e. you can afford employees) feel free to go for the .99. The idea behind it is that while $4.99 really isn't any less that $5.00, it looks smaller ( because 4 is less than 5). Total psychology. Also notice how many stores will do a sale where you can get up to a particular percentage off. It's all about making it look like the customer is saving more money than they really are. |
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Jayy<3
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i would agree with that other dude..an even dollar including tax..personally i HATE carrying change...plus it will make lines move faster lol |
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Ken D
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For lower priced items you will get more sales, oddly enough, pricing in multiples as silly as 2 for $2.00. It is a psychological point. The customer is thinking in multiples instead of a single purchase. |
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sam
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.95 because it seems like so much less to most people and it doesn't really make a diff. to others! |
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megamom
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There is a tried and true example of psychology in pricing that works..whatever the product or service is, .99 sounds like a better deal than the full dollar amount .. (ie: $4.99 vs. $5.00). This is why it is used so often in marketing. |
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Peter C
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The 99 cent price point is a psychological gimmick to make the price appear lower than it actually is; for example, $49.99 doesn't look as expensive as $50.00, so you get a better price impression. No reason to go down to 95 cents--you'll get 4 cents more a sale by going to 99 cents, and it all adds up. This pricing technique becomes pretty ridiculous over $100, but can be shifted to dollars instead of cents for the same impression; e.g., $149 looks a lot more affordable than $150. |
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amphibian1992
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Even dollar, and include tax in the price, that way, say someone wants to buy something that says "$20", and they only have twenty dollars on them, they can get it and not have to worry whether they have enough change for tax, and it speeds things up, since they don't get any change. |
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