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Value Tip: $97 or $100 - Why $100 Can be Better

by kindsvater
8 replies
When pricing products it is common to price slightly below a round number because of the psychological impression that it is so much cheaper.

$97 instead of $100.

It is surprising that so many IMers, including 'gurus,' use the same pricing strategy when placing a value on their product. Or on bonuses.

Instead of bonus having a value of $97. Make it $100.

At that point, your pricing goal for the bonus is the opposite of the pricing goal for the product -- not to create an impression it costs less, but that it has more value.

.
#$100 #$97 #tip
  • Profile picture of the author Ashley Gable
    Interesting. It does make sense.

    Would be interested to see if anyone has tried it. What the results were.
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  • Profile picture of the author SergioFelix
    Never thought about this...

    What if the customer thinks that the value of the bonus is fake as is not a common set price?

    Who knows but somebody may have split tested this already, it would be good to know the results, completely agree with Ashley too.

    Sergio
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  • Profile picture of the author Len Bailey
    Sound logic. Many of the clients I've worked with also sell the premiums (i.e., bonus reports) in their online store -- hence, the price.

    However, as you all know the first rule of direct marketing is "Test everything." And this is one area I'd love to see tested.

    Anyone have any experience testing premium prices in this manner?
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    • Profile picture of the author Irish Intuition
      Originally Posted by Len Bailey View Post


      Anyone have any experience testing premium prices in this manner?
      I haven't but I am amazed how everyone follows the beating drum.

      I never paid attention to the the pricing phenomenon until this
      forum beat it into my subconscious.

      This is worth testing
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      • Profile picture of the author DGFletcher
        Does the $97 still seem 'cheaper' to people? I see "$97" as 'a cheap way to say $100'.

        All my products are in the $7-$20 range at this point, so I haven't had a chance to test it. Hadn't thought about it really until this thread.
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  • Profile picture of the author MoneyMagnetMagnate
    Curiously, I just recently sold an item on Craigslist - it was selling for $80...
    It sat for a week 1/2, with no action. I re-entered the price to $79, and I got a response and sold the item within hours... (the guy gave me 80, and said keep the change)
    Coincidence? Maybe, maybe not -

    Personally, as a marketer who has seen a lot of scammy crap products, usually with initial price points of $39, $47, $67, or $97 - it acts as a "warning" visual to me...maybe using a price close to that but does not give that subliminal reaction keeps the reader engaged - and gets a sale.
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    • Profile picture of the author JakeDaly
      In regards to the value of bonuses..

      $99 > $100 > $97

      Of course having a bonus of $100 does invoke more value in the mind of the consumer than.. say, $97. And we all know $99 IS practically $100.. amirite?

      But appraising something "atta hundred bucks" makes some stop and think "hmm? It's a nice even number.. but, really? Who's to say anything should be valued at exactly $100? Guy must be a prick."

      Seeing it appraised at $99 registers as a common occurrence in the mind of the consumer, and thus they continue onto the rest of your sales page seamlessly believing full well that your bonus is worth $100. And they do so without calling you a prick.
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  • Profile picture of the author SergioFelix
    Well we are all used to set prizes like $0.99, $1.99 in our every day life.

    With Internet Marketing the cheapest I saw outside the WF I think it was full products at $7 (with hidden upsells for $37 or more) and $1 trials.

    Every other regular product seemed to be selling at $17, $27, $37, $47, $67 or even $97.

    (I haven't seen offers at $57 though)

    Oddily enough, it seems that right now the best converting prize here at the WF is set at $5

    And I do remember buying a training program for something like $19

    So my psychology is all twisted as you can see haha

    I think we need to get a book on this topic...
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