Why Wal-Mart Doesn't End Prices w/ 99

Honestly, I was always kinda wondering why walmarts always have things at that margin of price no 4.99 for a shirt or 12.99 for some walmart shoes. lol Makes sense now

OR they haven't had the initiative to try something different.

baaaah!

Because a company of WM size does its own testing rather than relying on the same info that's been published for years.

Look at the supplements and vitamins on WM shelves. The main brands are often with the .99 cents at the end. The generic WM Equate brand is more likely to be $4.00 or $8.00 - sets it apart.

kay

This is why you don't believe everything you read on the internet...

Oh i see, that is also why those home tv shopping stuffs always have a price that ends with .99. But what ever the price is whenever it has a decimal I always intend to round it up.

That's exactly how the article was explaining this! Apparently the majority of consumers round the price down instead of up, and this phenomenon is why you see so many items at discount stores priced with the .99 at the end.

7 is associated with being a middle number, being between 1-10. It's kind of a mob mentality of numbers and 7 fits in well.

A product priced as $247 would sell better in terms of volume, than a similar product at the price of $199 - aside from the fact that more pricey items are partnered with the belief that an item must be of high quality.

With $247, you see 2 4 and 7, which are two low numbers and a middle ranged number at the end. We see that the majority of the numbers are low, thus we associate the cost of the item as being low. How we read from left to right does play a role in this.

With $199, you see 1 9 and another 9. You see two high numbers, thus you associate this product as the cost being high.

There is something called counter persuasion, and you notice this a lot with high priced goods, I'll write about that in a second. When you say "Hey, buy this thing, it's $1999" the buyer counter and says "No, thats $2000" - It's not that the buyer has become smarter about sales tactics, it's because they have just become more used to it. If someone says "Hey, buy this thing, it's $1977" they buyer isn't going to say "Hey, that's $2000" even though it is still close to the number of 2000.

Check out these Armani suits. Notice the amount of 7's?
Outerwear Emporio Armani on Emporio Armani Online Store United States

A lot of people here use counter persuasion and don't really know it. When you say, "Hey, buy this for $199" the buyer says "Er, no, thats expensive" - you can then say "Hey, how about this, I will sell this to you for $177" - That is only a $22 difference, but to a buyer, there is no calculation - you've just greatly reduced the cost to a deal.

Of course, there is an importance of "7" from a sellers point of view, you always want to get the most you can. When you have an item that costs $2, is it smarter to resell it for 9 or 7? 7, because the actual amount of sales you make by selling it for 7 will surpass the amount of money you lose by not selling for 9 while you steal earn close to 9.

Consumers world wide are going through this phase where we are less interested by the number 9, and 7 is the new safe haven. Who knows what happened to 8 (actually, its a high number). This started in 2005... because of the internet.

Zeros are funny, almost neutral numbers that don't really have a placement as they are both high and low. If you take an item and sell for 19.99 and you get an item and sell for 19.00 or even 20.00... 51% of people would choose 19.99, and 49% would choose either 19.00 or 20.00 - I think this is because we closely relate 9 to 0 now, and theres a bit of psychological normalcy bias towards 9, since we are so used to seeing it.