Why your prices always ends in 7

I don't know. But it works. ;-)

Karan

In Asia, eight, 8, is the lucky number

My next deal will be $88, just because it will cause prosperity

My market is outside USA, because USA has bizarre gambling laws

Seems politicians are making too much money from illegal gambling to legalise it

This is the psychological theory behind it.

Sales copy excites the emotions, so the price is first interpreted by the emotional part of the brain.

The emotional side of the brain rounds to the nearest five, so that seven is treated like a five.

The rational side of the brain rounds to tens, so when that five gets passed over to the "do I have the money" part of the brain it rounds down to zero. (This is why your teachers had to drill it into your head that fives are rounded UP - your brain naturally WANTS to round them DOWN.)

So if your price is $27, the prospective customer evaluates it as though it's only $20. But if it's $28, the same customer evaluates it as $30, so you may as well charge $37 - which is also evaluated as $30.

Many people have tested this in unscientific and statistically invalid ways, and come up with either independent confirmation of the results ("See! We told you do!") or evidence that they're complete BS ("But that test was unscientific and statistically invalid!")... but there just isn't enough compelling evidence on either side.

Personally, I end my prices with a 7 because everyone else does... and if you don't it looks like you don't know what you're doing. My $5, $10, and $12 products simply don't convert as well as $7 and $17 products.

I think I read it in the book Influence by Robert Ciadlini that for some reason, most people are more likely to buy something just because of the number 7.

I don't know but if it works, why not?

:p

I'd suggest you look at it this way:

If it works, then no need to think about why it works.

Trying to analyze why it works could be of value, but I personally don't care why it works--it just simply works.

Nothing wrong with asking the question, but it's a bit like electricity.
No one has ever really explained what it is, but when you flip on a light switch, all that matters is that it turns on the light. : )

7 Wonders!

It's because it is better than 9

where IS asia?

I don't think it's psychological pricing. Maybe it is just coincidence.

This topic comes up again and again on this forum... along with all the "theories" as to why it works.

The fact of the matter is, most people that end their prices in a 7 do so simply because that's what everyone else is doing... and because they read threads like this. (Whether or not many people posting replies actually have experience and data with this is another thing though.)

The IM niche is one such niche where 7 probably does work the best, and in my opinion that's simply because the market has become accustomed to it. After all, if you saw an IM product with a price that didn't end in 7... it would look odd.

But out in the trenches, in "real" markets, ending a price in 7 quite often isn't the best option and you'll probably find you're leaving a perfectly valid $2 or $2.99 on table.

Testing, of course, is the only way you'll ever know.

LOL. A few weeks ago I saw topic with the same question
Maybe as they said it is lucky number

It's fascinating to see all the 'theories' as to why 7

As someone said - it's 7 because that's now what everyone expects to see!

From my own readings and what I remember of them....
It's a facily that is now engrained into the norm!

The initial testing done (I think it was Ted Nichols), showed that offline pricing got best results from products ending in .95 or .99
HOWEVER - his testing showed that online results produced more sales when the price ended in 7

AND THAT is where most people stopped reading and moved to a 7

Had they continued to read - they would have discovered the testing was based on products with 3 digits... hence $197, $297, $497 etc. = THOSE were the ones that converted better!

Under $100 tests showed there was no significant difference between 7 and 95 or 99

Which leads us back to ... they end in 7 because everybody else (for the most part) ends theirs in 7

LOL

Randy

I had thought .99 was more common than 7?

Ohwell, 7 is my lucky number

It's an IM thing, if you go to the supermarket, most items are .95, .99 etc and 7 is not often used, if at all, in fact they use every number going, like $3.46, $7.00 etc

I have seen marketers using the "conventional" pricing, for example $19.95, instead of using 7

I don't think anyone cares, just use what ever you feel comfortable with!

seven is the lucky #.

Yes, it is a psychological thing.

Through thorough testing, numbers ending in 7 seem to convert the best. No one knows for sure what the attraction with the number 7 is.

Cheers,
Dave