why $1.97 and not $2.00

Paul Hancox · 05-02-2009, 01:38 PM

I guess it depends on your market. I have seen the scientific studies that demonstrated that, in a supermarket setting, people purchased more of products when they were priced at, say $1.99 instead of $2.00 - by quite a bigger margin than the small price difference.

This is because $1.99 (and I suppose the same would be true of $1.97) is seen as more significantly lower than $2 than it is, because the first thing we see in the price is the 1, rather than the 2.

However, since most of us here are not selling in supermarkets, we need to test our prices. A lot of competitive markets online (such as web hosting) still use this kind of x.99 pricing structure, because they need to emphasize the lower cost. x.99 contributes to that perception simply by its constant use in low price appeals. (Again, studies have been done on this.)

On the other hand, if you're selling high quality, exclusive products, you might want to avoid that.

Zacman · 05-02-2009, 01:43 PM

When selling to other online marketers it is best not to use cents at all IMO.

Nice clear figures like $7 $10 or even $25 bucks seems to convert better and gives the impression you are not trying to entice them into the purchase even if it is subconsciously.

Just my $0.97 worth of advice.

Cheers,
Zac

JohnMcCabe · 05-02-2009, 01:57 PM

Naked, unsolicited plug warning...

If you have questions or problems about pricing, grab Paul's WSO, Pricing for Big Profits.

It might not answer all your questions, but it will give you a helluva good framework to hang them on while you test for the answers...

Blase · 05-02-2009, 03:56 PM

Quote:

Originally Posted by Desmond Ong

I took psychology class last semester and learned something about this.

Apparently, women tend to see $1.97 as $2 and men tend to see $1.97 as $1.

Wait a minute, As a guy I know I am not as smart as a woman,
(just ask my wife

) but I know that $1.97 is closer to $2.00
than $1.00!

OmarNegron · 05-02-2009, 03:57 PM

psychological all the way!!!

Steve Sanchez · 05-02-2009, 04:00 PM

We just had this discussion about the number 7. It just works, so I changed my WSO to $7 and all of my products end with 7.

05-02-2009, 01:38 PM	#51
Paul Hancox Senior Warrior Member War Room Member Join Date: Jul 2003 Location: United Kingdom Posts: 2,028 Blog Entries: 2 Thanks: 433 Thanked 554 Times in 229 Posts Social Networking	Re: why $1.97 and not $2.00 I guess it depends on your market. I have seen the scientific studies that demonstrated that, in a supermarket setting, people purchased more of products when they were priced at, say $1.99 instead of $2.00 - by quite a bigger margin than the small price difference. This is because $1.99 (and I suppose the same would be true of $1.97) is seen as more significantly lower than $2 than it is, because the first thing we see in the price is the 1, rather than the 2. However, since most of us here are not selling in supermarkets, we need to test our prices. A lot of competitive markets online (such as web hosting) still use this kind of x.99 pricing structure, because they need to emphasize the lower cost. x.99 contributes to that perception simply by its constant use in low price appeals. (Again, studies have been done on this.) On the other hand, if you're selling high quality, exclusive products, you might want to avoid that.
	PRESELL MASTERY: What you thought you knew about "preselling" is about to radically change. Forever. Click Here. BECOME A COPYWRITER, WITH CLIENTS, IN AS LITTLE AS 6 MONTHS...CLICK HERE.

05-02-2009, 01:43 PM	#52
Zacman Active Warrior War Room Member Join Date: Feb 2009 Posts: 69 Thanks: 6 Thanked 5 Times in 5 Posts	Re: why $1.97 and not $2.00 When selling to other online marketers it is best not to use cents at all IMO. Nice clear figures like $7 $10 or even $25 bucks seems to convert better and gives the impression you are not trying to entice them into the purchase even if it is subconsciously. Just my $0.97 worth of advice. Cheers, Zac
	Trump For President Breaking News! Get Paid To Advertise At Free Sites Here!

05-02-2009, 01:57 PM	#53
JohnMcCabe Happy Hooker War Room Member Join Date: Jun 2007 Location: North of the Peace River, Southwest Florida, USA. Posts: 7,623 Thanks: 2,685 Thanked 4,393 Times in 2,394 Posts Social Networking	Re: why $1.97 and not $2.00 Naked, unsolicited plug warning... If you have questions or problems about pricing, grab Paul's WSO, Pricing for Big Profits. It might not answer all your questions, but it will give you a helluva good framework to hang them on while you test for the answers...
	Salad is not food. Salad is what food eats... -- The REAL PETA, People for Eating Tasty Animals "I did not fight my way to the top of the food chain to eat tofu!"

05-02-2009, 03:57 PM	#55
OmarNegron #1 Yankee Fan Join Date: Dec 2008 Posts: 352 Thanks: 22 Thanked 23 Times in 16 Posts Social Networking Contact Info	Re: why $1.97 and not $2.00 psychological all the way!!!
	www.OmarAndWill.com - Got Questions About Adsense Or Niche Sites? Ask Us At Our Blog Here!

05-02-2009, 04:00 PM	#56
Steve Sanchez HyperActive Warrior Join Date: Feb 2009 Location: Colorado Posts: 219 Thanks: 0 Thanked 10 Times in 10 Posts Social Networking	Re: why $1.97 and not $2.00 We just had this discussion about the number 7. It just works, so I changed my WSO to $7 and all of my products end with 7.
	Free Videos on How to Make Ebook Covers and Ebook Marketing Ideas