Why do the cost of WSOs always end in $7?

[Devilfish]

I don't know if anyone else has noticed this, but why are ALL the WSOs either $7, $27, $37, $47....$147, etc. etc.

What is the significance of $7?

[Alexa Smith]

Everyone thinks that someone else must have done some research and shown that you make more sales that way. It's self-perpetuating. Either that, or someone actually did, and that was what they found.

It has gone around for years about using the magic of $1.97 vs $2.00 ... Yes extensive research has been done and it does make more sense for customers to buy something at $1.97 vs $2.00 because it looks cheaper.

I can not remember who it was because it has been years but it may have been Allen Says or Mark Joyner that actually created a info product showing research and test results.

Pretty much this is the reason why you see Wal-Mart and many other stores that do the same thing. Look at info commercials and you see the same... As seen on TV products are famous for doing this also...

By the way Hi Alexa, how have you been... Not seen you in a good while..

James

[Paul Hancox]

As the above posters said, x7 has been tested in certain markets to sell more.

However, I am a little doubtful about the WSO section. Once everyone and their dog starts doing something, it loses some of its magic

Still, you could do a price test by NOT mentioning the price in your WSO, have people click to your site to get the price, and then split test it.

[Raydal]

7 is a mystical number and places people in a buying trance.

And 17 is less than 20, 27 is less than 30, 37 is less than 40,
47 is less than 50, 57 is less than 60, and 67 is less than 70

And you should be in a trance by now.

-Ray Edwards

[AverageGuy]

some people said that they tested it, many people heard that 7 works better. anyway, as long as many people believe so, it is unnecessary to figure out why, just follow it (IMHO). why not test it by ourselves? because, in most cases, the sales # will not be huge (or, statistically meaningful). If we tested it by ourselves, very possible, we'll get wrong conclusion.


david

[Daniel Scott]

Originally Posted by Raydal

7 is a mystical number and places people in a buying trance.

And 17 is less than 20, 27 is less than 30, 37 is less than 40,
47 is less than 50, 57 is less than 60, and 67 is less than 70

And you should be in a trance by now.

-Ray Edwards

I suddenly have a profound urge to buy seven copies of everything Ray's selling...

-Dan

[Alan Cheng]

Haven't tested it but just wondering if $29.97 would work just as well as $27.

It still ends with a '7'.

[Kevin Riley]

Originally Posted by Alan Cheng

Haven't tested it but just wondering if $29.97 would work just as well as $27.

It still ends with a '7'.

My products always end in 9.95 and sell well. I don't subscribe to the 7. Why give away $2.95 per sale, when the perception of price between say $47 and $49.95 is not noticed (both are seen as less than $50)

Also, people still are used to the offline pricing structure of 9.95

[Alan Cheng]

Good old Kevin. Glad someone like you tested it.

[Kevin Riley]

Originally Posted by Alan Cheng

Good old Kevin. Glad someone like you tested it.

Who you callin' "old"? Wait until we meet again.

[Alan Cheng]

Originally Posted by Kevin Riley

Who you callin' "old"? Wait until we meet again.

erm....well you're old compared to me. I'm 18 and you're 21 right?

[Kevin Riley]

Originally Posted by Alan Cheng

erm....well you're old compared to me. I'm 18 and you're 21 right?

Fantastic save I applaud your diplomacy and shall be buying you a cocktail next time we youngsters get together.

[Dan Liptak]

It's a conspiracy! There is a new movie coming out starring Tom Hanks that will explain all.

[ONOFFMarketing]

I've always been one to round up, so the gimmick isn't quite as workable here. Either way, I think $47 is a lot more appealing than $49.97. $47 is $47, $49.97 is $50 as far as I'm concerned.

[gtara4]

It is lucky seven!

[AndrewCavanagh]

Many years ago Ted Nicholas tested different prices in direct mail marketing and found prices ending in 7 tended to get a higher response.

It's NOT true online (yes we've split tested it) but that old marketing nugget remains.

The reality is if you're selling your product for $17 instead of $19.99 you just blew $2.99.

Both convert pretty much the same and I have tests that suggest the 9.99 ending actually converts better than the 7 price ending.

Kindest regards,
Andrew Cavanagh

[mikemcmillan]

It has nothing to do with the psychology of buying. There are seven seas. Seven is the most likely total to come up when rolling two dice. There are seven deadly sins (lust, gluttony, greed, sloth, wrath, envy and pride). Seven is the lowest prime number that is not in the Fibonacci sequence. There were seven wonders of the ancient world (the great pyramid of Giza, the Hanging Gardens of Babylon, the Colossus of Rhodes, the Lighthouse at Alexandria, the statue of Zeus, the Temple of Artemis, and the Mausoleum at Halicarnassus). There are seven days in a week. There are seven luminaries in our solar system visible to the naked eye (the Sun, moon, Mercury, Venus, Mars, Saturn and Jupiter). The seventh son of a seventh son is a lucky man. There are seven sisters (stars) in the constellation of the Pleiades. In baseball there is a seventh inning stretch. Breaking a mirror brings seven years bad luck. Rome was built on seven hills. Seven is the neutral point on the pH scale (I used to be a chemist). There is a seven year itch (perhaps). The opposite sides of a dice always add up to seven. James Bond is 007. There are seven notes in the musical scale. And Snow White lived with seven dwarves (Dopey, Grumpy, Doc, Happy, Sneezy, Sleepy, and ?). Do you know the name of the dwarf I left out?

So as you can see, the reason many prices end in the number seven is based entirely on valid scientific, mathematical, and historical facts.

[Traffic-Bug]

I think it is part of the symbol V, or a part of delta.

[JonStein]

Ahh the Psychology of Pricing!

Last week a friend of mine asked me to come over to his farm to help prepare several head of cattle for transport to the auction and eventual slaughterhouse.

We prepared the holding stalls as the cattle meandered around the field. Rich then took a bucket of ear corn and laid out a path from the field into the barn and ultimately to the stalls, where the cows would be held until the morning. Unbeknownest to them they would soon be on their way to 'burger heaven'.

At first, the largest cow wandered over to the ear of corn, picked it up and started to follow the trail to the barn. One by one the other cows followed suit and headed over to the barn. Within a few minutes all 8 cows were securely in the pens and locked down for the night.

The reality of it is that Internet marketers are basically like cattle, they tend to follow each other aimlessly wandering around because so and so said it, little do they know the advice they are following may lead to their eventual destruction.

To set your prices based on what some phony research paper or IM genius says is not only ridiculous, it is counterproductive to what your customer may perceive as value.

Pricing should be a combination of factors relevant to what you are offering. Your cost, your overhead, perceived value, desired profit, etc.

In other words, if I offered you a genuine 18KT gold necklace with 1 carat diamond would you be more compelled to buy it at $27 or $29? (Gee, I hope you do not fall for this one!)

The truth of the matter is that your product should be priced, among other things, at the customer's perceived value. In economics we used to call this 'Perfect Pricing'

The keyword is perceived Value: If you perceive the value of the aforementioned 18KT necklace at $300, would you be still buy it from me at $27? (if you answered yes, I will PM my paypal address to you immediately!)

I say stop following the crowd and set your prices according to the VALUE! this will not only get you more sales, it will also give your customer what they believe is a truly good value.

Besides, every time I see a price ending in 7, I get a little suspicious, just seems to me that there is something wrong when everything is the same price, either they are all worthless or they are all really good deals!

[Netcel]

If I ever do a WSO I'm going to price it at $77.77

[Devan Koshal]

7 is a trigger number.

[Steve Sanchez]

Why do think James Bond is 007.

It sells! It is a cultural phenomenon that gets into your subconscious.. Plus it works so why worry about it just do.

See my $7 WSO if you don't believe me.

[Woody C]

Originally Posted by Devilfish

I don't know if anyone else has noticed this, but why are ALL the WSOs either $7, $27, $37, $47....$147, etc. etc.

What is the significance of $7?

Wait! You should quit generalizing. My WSO is only $14. That is much cheaper than $17 and it DOESN'T end in a 7. You should definitely check it out for that price!

It has also be shown/proven in studies that $7, or any odd number such as $14.95 or $1997, is perceived as being a price of VALUE.

Whereas, any price that ends with an even number or on an even whole number, such as $15.00 or $2,000, is perceived as LUXURY or PRESTIGE.

I belive I read this in Cashvertising by Drew Eric Whitman if you want to check it out. I also go over this a little bit in my WSO.

[Droopy Dawg]

Because 7 just looks so cool.

[Waterways2k8]

Hi Devilfish

Excellent post your have here and great thread starter - it is certainly interesting that the number "7" seems to help increase sales and conversion.

I think the issue here is that our human minds tend to perceive odd numbers to be exciting, enticing and just damn weird. Plus it just so happens that the number 7 tops the list - it certainly conveys a message of much better value, i.e. it's in between 5 and 9 - and I think I read before somewhere about supermarkets use the number 5 on the end of pricing for product which are about to go out of stock or need clearance and the number 9 is for products which are new or in stock and plentiful supply.

Another reason, I believe is that our human minds love exciting and stimulating, and so every time now and again, we need to get our fix of adrenaline rush or an sense of excitement, fear, taking risk, mysterious or something just that different and daring. A pricing ending with an odd number is perceived to be exactly that more unique and interesting.

Whereas the reason I think we don't use or see much usage of even numbers on the end of pricing is that it's like everything is perfect, in harmony, balanced, boring and all is calm. There's nothing exciting or sassy about it. It's like "even" numbers is plain old Jane, normal ordinary car and "odd" numbers are like striking Sarah, flashy sports car etc...


Anyway that's what came to my mind when I read this thread and apologies in advance if I have offended anyone.

Best wishes to Devilfish and all fellow Warrior Members as well

[Harry Behrens]

I think if anything, people who buy a lot of WSO's at $_7 are more likely to buy other products at $_7. They've done it. They've repeated it. They're accustomed to it, it's familiar, it's comfortable, it doesn't trigger mental red flags or anything. It can definitely turn into a buying trigger for them. It's when I venture out of the IM/MMO niches that I would start to question to magic of the 7. Admittedly, I have not tested it myself yet :/

[DrWELLth]

My 7 senses ... 7 is about chunking - about what you can remember before you have to rechunk it ...

7+/-2 ... if harder to remember >>> 5 chunks; if easier to remember >>> 9 chunks ...

The psychology of remembering ... aligned with the forgetfulness curve ...

Simpler product uses 9; slightly complicated product uses 7; complicated product uses 5 ...

Again my 7 senses worth ... ))smiles Steve

[W.P. Allen]

"7 Little Chipmunks Twirling On A Branch, Eating Lots Of Peanuts On My Uncle's Ranch. You Know, That Old Children's Tale From The Sea."