Prices Ending in 7

by 44 comments
For as long as I can remember, prices in the IM arena have ended in '7' $7, $17, $27, $47, $67, $97 etc. because apparently there is something about '7' that converts better.

Now I'm trying to convince my company that our software products should reflect this pricing structure, but their question is: why?

I've searched for some solid evidence of people saying why prices end in 7 convert better, but turned up short. Our website and product is such that it's pretty difficult to track changes in price to changes in sales.

Do you subscribe to this 7 theory? Have you tested it and found noticable results?
#internet marketing #ending #prices #seven dollar
  • Profile picture of the author Jelasco
    What is your role in the company? Unless you are upper management, if they want to ignore your suggestions, let them. That's what most companies do with employee suggestions, at least here in the US.

    They can pay a consultant $100,000 to tell them to use prices ending in 7.
  • Profile picture of the author QuantumSuccess
    If I remember this correctly, it was Mike Enlow who brought up this subject 8 or 9 years ago. After that almost everyone made their sales price end with '7.'

    From my experience it still works with mid to high end products. But with lower end products it doesn't make any difference at all. For instance $29.97 doesn't convert better than $29.95.

    Let's not forget that retail giants like Wal Mart, etc. never used the ending "7" but still use prices like 19.99, 14.95, etc. And since they do intense research and testing on those things, I think they would have used the number 7, if it would have any significant impact on their sales.

    Hope this helps.

    • Profile picture of the author NewBeing
      I find this subject quiet interesting...

      I believe that prices that sell have nothing to do with ending in a 5, 7 or 9!

      It's to do with what we are comfortable with...

      And that's prices which we see the most!

      My advice is, if you want to sell a product at say around the $40 mark, go to Amazon and see what's the most common price around the $40 mark is...

      Say it's $39.95, then sell your product for that amount, because that's the price we see more often and thus we are most comfortable with.
  • Profile picture of the author Andy Fletcher
    As far as I can tell someone "proved" this based on some kind of urban voodoo. Unfortunately people were stupid enough to believe the statistically irrelevent results that it showed. Thus everyone "knew" it to be true and so now no one can sell a serious IM product without it ending in a 7.

    Think about it. The first few IM lessons you learn are "The money is in the list", "Your reputation is everything" and "End prices in a 7". You have no list. You have no reputation. But you sure as hell can create some stupid ebook priced $27. Since you know this to be true, would you trust any Internet "expert" that didn't sell his/her product for a price ending in a 7?

    No, probably not. And thus the cycle continues.

    PS: For anyone who doesn't get it. Ask yourself why your last coke didn't cost you 97c.
    • Profile picture of the author Jelasco
      Major retailers don't follow this rule. They used to end many prices with 9 or 5, such as 7.99 or 9.95.

      Now they are all over the map. Here are some prices for random products from Walmart's website: 29.86, 135.88, 24.66, 97.41, 39.26, 179.22

      The only pattern I see there is no whole dollar amounts, except for the many prescription drugs that are $4.

      I didn't notice any prices ending in 7 but quite a few with 6 or 8.

      I suspect they have a pricing formula that takes into account the suggested retail price, their cost, their competitors' prices for that item, and other factors. Or maybe humans make them up, but they have too many items for one person to do it all.
    • Profile picture of the author Kyle Tully
      Originally Posted by Andy Fletcher View Post

      As far as I can tell someone "proved" this based on some kind of urban voodoo.
      Actually it came from a Ted Nicholas seminar back in the early 80s. He tested it and shared his results. Gary Halbert has also talked about it and credited it to Nicholas.

      Still, it's closing in on 30 years since those tests. I've seen new tests that show very different results.
  • Profile picture of the author imb
    I wonder if odd pricing also work in service quotations, like in web development deals. Usually price quotes are in a whole number like: $1000, $2000, etc. I've had experience in bidding sites where in the winning bidder defeated me by using odd pricing. For example I bid $1000, he bids $998. Take note though that skills, reputation are also considered by the buyers and he appeared to have less ratings than I do. There where also other bidders who bid lower than his bid (ie: $500) so it's not always the lowest bidder who wins.
  • Profile picture of the author sonicadam123
    I've always found psychology very interesting, i remember learning about the psychology behind why retailers would price things at £19.99 as opposed to £20.00(for example) back in school, think I was like 10 years old - and that probably is part of the reason why that pricing doesn't work so well anymore.

    Some retailers in the UK I have noticed pricing their price point changing to .97, although I know for currys/pcworld/dixons .97 indicates an end of line product.

    One food retailer, Iceland has reverted to what they call "round pound value" as everythings rounded up to the nearest £ - although it would be interesting to know how this has effected sales, or if it has at all.

    Still very interesting
  • Profile picture of the author GeorgiaB
    Some people said the tests reveals that best number to end with for online sales was 7. A long time ago, it was better to end with 9.

    I have never personally tested the structure of ending with a 7. Personally, I use both, prices that ends with 7 and prices that ends with other figures.
  • Profile picture of the author vndnbrgj
    It's a fact that the average price of a good selling WSO is $17...
  • Profile picture of the author Ben Gordon
    There are thousands of reasons why marketers choose the number 7.

    1. It is considered a really good number, some even call it god's number.

    2. When a product is $49 people are already used to thinking its $50, but when it's $47 because of the slight change, it's not so close to 50, therefore leaving them thinking 40.

    Again, there are more reasons, these are just some that came into my mind right now .
  • Profile picture of the author alcymart
    I'll guess number 7 is the favorite number of most people consciously or unconsciously I know this could turn into a debate, Without having done the research and for what its worth, take it as a wild guess for now...

    I know it to be my favorite numberthus my

  • Profile picture of the author celente
    I could go into a theory, but seen on on a blog how we take money and add value and are always after a bargain. I just cracked that down to two lines.

    However I have always used 7's and 9's in my prices. Even in my WSO I am running at the moment. They always seem to work better.


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