Why The Price $97?

[TeeReye]

Hi,

First off, I am new to this forum and I am learning a lot! Thanks for that.

I am trying to figure out why marketers choose the number 97 for their pricing. I tried searching the forum but couldn't come up with a link since the word search was too common.

Thanks.

[GrantFreeman]

I'd like to believe that most smart marketers test at least 3 different numbers, and picked the winner that beat the control in a series of pricing split tests.

Grant

[seantanmarketing]

Originally Posted by jimb12345

i think because it just below $100 and $97 sounds better than a $100 or more.

I agreed. If you sell $95 then it seems like too near $90 then your $95 will looks like expensive $5.

Most product price sell $49.90, $69.95, $97, $197, and etc. It's just some sort of psychology.

[peter gibson]

Actually there have been extensive tests done that have determined 27.00, 47.00, 97.00, and so on... have the best conversion ratio of any price point. I have no idea why that is or where I remember reading that.

I guess the human race has an unconscious affinity with the number 7?

[Lokesh Sharma]

There's a similar topic out there at why $1.97 and not $2.00

Actually, figures ending in 7 have been proved to convert psychologically.

- Lokesh Sharma

[AtomicFlipper]

I remember testing done on this by a well known marketer who has now passed on. His findings were that $95,$99 were over done and people basically passed it in.

He found that having a seven (7) as the last number of the price attracted more buyers, why? I can't remember why, but 7 seems to be the magic number.

[JeffLam]

Like what others have said, its the buyer mindset psychology. A marketing psychology.

The mass public have been so used to $9.99, $9.90. Although I remembered somewhere that even now, this $9.99 trick still 'converts' better than the round number $10. But then again, you may still have another large group of potential buyers that stopped and add that $0.01 to realise its a $10.

What about $98? It makes it look like your trying to just be one-up of others who price their items at $99! And what more, you save only $2.

$97 on the other hand, makes it round down to $95 and makes the impression of an item that was previously supposed to be $100 to be discounted to $95.

[SeanSupplee]

Really simple 7 in the magic number 7 secrets to success, $7 report , $97 software always sounds better then any price otherwise

[Adrian Cooper]

Originally Posted by TeeReye

Hi,

First off, I am new to this forum and I am learning a lot! Thanks for that.

I am trying to figure out why marketers choose the number 97 for their pricing. I tried searching the forum but couldn't come up with a link since the word search was too common.

Thanks.

It is not just "$97" it numbers ending in "7" generally.

I don't know why this should be - it seems to be one of those quirky IM things.

All my product prices end in "7" anyway - would not do it any other way

[Shakul]

I have tested many price tags and for me $7 works very well. Physiologically people tend to buy a product with 7 as a first digit...

Shakul

[bravegoat]

I was actually wondering the same thing 2 days ago. It makes sense that 7 would sell better than 9.95 which people have grown to dislike over time

[Adrian Cooper]

Originally Posted by bravegoat

I was actually wondering the same thing 2 days ago. It makes sense that 7 would sell better than 9.95 which people have grown to dislike over time

I have often wanted to price a product ending in "9.99" to make more money, but could never bring myself to do it - I always end prices in 7

I even have a best selling paperback on Amazon and sold around the world, and even priced that at $37 for the US market and £19.97 for the UK market

I have been in IM ever since it was invented, and it has almost always been that way.

[Raghav Mishra]

Physiological advantage.

On the TV, you'll see $99, $199 used very often. On the Internet, you'll see $97.

It's just physiological thing. I observe in daily lives people consider $2,999 near $2,000 and not $3,000.

[geekspeak]

Because odd numbers appear to be calculated.
When doing quotes I often put figures like $1897.53
Even numbers are more commonly used, so to look different - use odd numbers.

[bobbly]

The reason for ending prices in 7 is that Ted Nicholas, a legendary information marketer, says he has tested this for decades and found the best results with prices that end in 7 vs. 9 or 5. I am not saying it applies universally, though I know Ted personally and put a lot of trust in what he says.

[Magic Johnson]

Originally Posted by peter gibson

I guess the human race has an unconscious affinity with the number 7?

I guess that the human race have an unconscious with the remeber of statistics that are yet to be provided on a wider base through proved with a real study!

I couldn't resist.

[Magic Johnson]

And what makes me laugh me off my chair is that a few here refer to this studies, but no one of you remember where you heard them. LOL

It's like that whisper play we had in school during early childhood. What comes out of it is just not the same as taken it directly from "the horses mouth" so to speak,

Oh well keep riding the 47, 67, and 97 I dont really mind

People put too much thought in to numbers like this it seems. TEST. and not just the 7777sss

[igorhelpsyousucceed]

For the same reason
Wall Mart chooses 99.99$

It just sounds as it is 99 not 100.

It is psychological thing than influences your
emotional reaction. People buy with emotions after all...

Igor

[charles4]

We are all just being smart marketers. Always trying to get the most $ while apearing to be at a lower price.

Think about it. Walmart does

Charles

[Fairlinks]

These days, webmasters (mostly membership sites) have changed the strategy, offering $1 for first 7 days and anything from $27 to $67/ per month thereafter. Heard good conversion (?)

[hangtimenino]

because it makes people think that odd prices are cheaper than those with even prices.

[Jeff Henshaw]

7 is claimed to work best on line (particularly in the Internet marketing niche). 9 is used extensively off line (and often on line in the non IM niche).

We,ve discussed this here many times (and on other forums), so I don't propose to take time preparing a detailed post.

Let's just put it all down to human conditioning.

Test your pricing. What works for you (makes the greatest amount of money), stay with it.

Just my brief thoughts,

Jeff.

[Jon Steel]

Different numbers strike us differently - psychologically. If you see something that costs $44.43 what would you think? I'm sure you would say that's kind of weird and you would lose focus on what's being sold - and the saler could potentially lose that sale because of it. There are just certain numbers that convert better and others that...dont -

js

[John Durham]

I have heard it said in religious circles that 7 is the number of perfection... dont know how much truth there is to that, but I like it. Yay! I just became a "hyperactive" warrior with this post!

Whatever that means...I think it's good.

Just goes to show that 7 might just be the perfect number for progress... and I can't prove it!

[Andyhenry]

There are several angles to this.

One is - people test it (I have) and it does convert so we use it.

Then there's the fact that in some cultures 7 is seen as a lucky number (even multiples like 777) = It's actually my lucky number and the day of my birthday so I can't argue

Also:

7 Days of the Week
7 Deadly Sins
7 Continents
7 Chakras
7 Body Orifices
7 Colors in a rainbow
7 notes in a music scale
7 major metals
7 phases of the moon
7 natural divisions of the brain
7 functions of the nervous system
7 compartments of the heart
7 major body organs
7 year itch
7th inning streatch
7th heaven
7 virtues
7 layers of the OSI model (computer-related)

People have an affinity with this number.

The Pythagoreans viewed it as a representation of perfection, 3 and 4, the triangle and the square, the perfect figures.

Then there's the religion angle:

The number seven is extremely important in the Bible and in fact, is mentioned more times than any other number. The number 7 is actually translated meaning "to be married to". So when couples were married in Bible times, they were seven. This can also be for Christians being seven to God. 7 is also found many times in the book of numbers (obviously). In the march around Jericho, they marched for 7 days and 7 times on the 7th day. There were 7 priests, and 7 trumpets. 7 has many more meanings as well.

Also 7 is reffered to as being 'complete' When God created the earth he rested on the seventh day, and that was the day that the earth was complete,(Of course by reading other scriptures in the bible we learn that it wasn't a literal 7 days, but rather MANY MORE years) there are a few instances where 7 is used to represent completion.


Andy

[MarkMilan]

I was wondering whether $100 could convert better than $97 if you're selling an IM product. For example, if your prospect is aware that $97 converts more, then pricing at $100 suggests you're being plain and straightforward, which in turn could make you more trustworthy in their eyes. Or is $97 always the magic number?

[Andyhenry]

Originally Posted by MarkMilan

I was wondering whether $100 could convert better than $97 if you're selling an IM product. For example, if your prospect is aware that $97 converts more, then pricing at $100 suggests you're being plain and straightforward, which in turn could make you more trustworthy in their eyes. Or is $97 always the magic number?

There is no one-size-fits-all answer - your relationship with the customer plays a part so the only right answer is to test it for yourself.

[WinsonYeung]

Ending with 7 have a better psychological effect to get customer to buy the product. This is supported by research (where i forget where I have seen it)

[John Durham]

Originally Posted by Andyhenry

There are several angles to this.

One is - people test it (I have) and it does convert so we use it.

Then there's the fact that in some cultures 7 is seen as a lucky number (even multiples like 777) = It's actually my lucky number and the day of my birthday so I can't argue

Also:

7 Days of the Week
7 Deadly Sins
7 Continents
7 Chakras
7 Body Orifices
7 Colors in a rainbow
7 notes in a music scale
7 major metals
7 phases of the moon
7 natural divisions of the brain
7 functions of the nervous system
7 compartments of the heart
7 major body organs
7 year itch
7th inning streatch
7th heaven
7 virtues
7 layers of the OSI model (computer-related)

People have an affinity with this number.

The Pythagoreans viewed it as a representation of perfection, 3 and 4, the triangle and the square, the perfect figures.

Then there's the religion angle:

The number seven is extremely important in the Bible and in fact, is mentioned more times than any other number. The number 7 is actually translated meaning "to be married to". So when couples were married in Bible times, they were seven. This can also be for Christians being seven to God. 7 is also found many times in the book of numbers (obviously). In the march around Jericho, they marched for 7 days and 7 times on the 7th day. There were 7 priests, and 7 trumpets. 7 has many more meanings as well.

Also 7 is reffered to as being 'complete' When God created the earth he rested on the seventh day, and that was the day that the earth was complete,(Of course by reading other scriptures in the bible we learn that it wasn't a literal 7 days, but rather MANY MORE years) there are a few instances where 7 is used to represent completion.


Andy

Wow Andy! That's amazing! Now I am forced to believe that there must be some significance to the number 7. Amazing that you know all that! 7 is officially my favorite number as of the reading of this post!

I had an intuition that something was up with it... I'm not sure if I should write LOL, because all of that is really kinda NOT funny... it really is kinda beyond explanation why people are so drawn to this number.

With all of the major bodily organs and precious metals, moon cycles, and chakras...maybe there is a 'natural' reason why we resonate with it.

Much food for thought here. Well done on that list of meaningful 7's!

I will begin utilizing the number 7 intentionally starting today!

You should make a whole thread out of that post!

I sense the "muse" in the air! Thanks for the looming epiphany!

"Ironically" As of this post I have accumulated 7 thanks and you are the 21st person I've thanked (3x7)!

Tell me that's not weird!

[John Durham]

ps. just noticed this: This was post number 5,447 for you, and the "thanks I just sent you was thanks number "737".

I'm going to bed before I jinx myself! lol

The more things you have in your life that you can love, the better your life is, so this has added to the quality of my life because now "I love the number 7" !

This is the kind of stuff that makes the Warrior Forum Amazing!

[Jon Steel]

Lucky 7...has positive feelings associated with it...

[Mark Coverdale]

So to sum up........... it's the 7

[Michael Lee]

Ask any person to quickly pick a number from 1 to 10, and 70% of the time they will answer 7. Try it out, they might think you're a mind reader.

By the way, it's not only numbers ending in 7 that's converting well. I've tested in selling products priced at $77 (begins and ends in 7), and they converted better than any $57, $67, or $97 products.

[claire101]

Excellent - I have now changed my lucky number to ...

[John Durham]

Hey boys and girls...It's time to sing the 7 song!

Do YOU like the number 7?

Of course! I knew you did!

I've invited our friend Mr. Octopus to sing along with us!!

He likes it so much that he had one of his tenticles removed... (camera pans to the left: all the boys say OHHHH!)

EVERYBODY TOGETHER NOW!!!

Let's sing!!

LOL!

[effektz]

I agree it's all about getting your price as high as possible without scaring away your customers, and $100 is just too high, $99 is over used. $97 just doesn't deliver that punch of "you're paying $100 for this" as other similar figures do

[dave830]

Who knows. I keep hearing there is research to back this up... but it's a proven fact that only 7% of marketers actually have ran tests for themselves.

[John Durham]

Originally Posted by dave830

Who knows. I keep hearing there is research to back this up... but it's a proven fact that only 7% of marketers actually have ran tests for themselves.

Henry Ford might say "Why run a test for yourself when you can collect data from the experience of the many others (7%) who have..."?

[Josh Anderson]

Because everyone else does.

Almost no one does their own price testing or even knows why they do it... most people who tell you why are just making stuff up as they try and think why people do that.

For me $97 has never been a good price point unless it is when I provide a coupon for a more expensive product that knocks the price down to $97 then the perception is better.

I have other price points that I use both higher and lower that have converted much better depending on the product and market.

[ragnartm]

I really don't get the craze, I honestly think "a hundred" sounds not only better but less than "ninety seven" or "ninety nine". However if it works better, that's great, don't mind anything I say then

[Josh Anderson]

I honestly think "a hundred" sounds not only better but less than "ninety seven" or "ninety nine".

In grade school we are taught that 100 comes after 99.

[Jay Greathouse]

7 is the new 9 in psychological pricing

this consumer shift has been well researched and documented, but don't look at pricing narrowly only at last digit

Frank Kern suggests going with $27 instead of $19 for example

and another guru suggests $67 over $49

just to answer the question:
more people will buy @ $97 than $100, $99 or $98, more than enough to make up for the $3 lower price and just as many will buy @ $97 as $96 or $95 so go ahead a make another $1-$2/sale

[Joe Giannetti]

I think because marketers all they do is COPY each other....
Mike filsaime sells a ebook for $97 so EVERYONE does...

[John Blaisdale]

As it's been said numerous times before this, people prefer $97 to $100 for the most part. While it is only a difference of $3 it has a major influence on whether or not someone is going to go ahead an purchase a product.

[IM Headlines]

They choose that pricing because it generates more sales... I don't know exactly why but it does.

You should try it yourself. Prices such as $7, $9, $17, $19, $27, $29, $97, $99 etc... always seem to work better than some other prices like $10, $20, $30, $100...

[Bugala]

To skip the ones others have already said and to add to Andyhenrys comment one more angle.

We must also notice that we basically associate 7 with positive things (although there are things like 7 deadly sins too) and 6 we on the other nhand associate with negative things.

666, number of beast.

6, number of human (6th day God created humans), and humans always mess everything up.

6 is less than 7, which is number of perfection.

7th day is the day God rested, so its holiday.

And for example in China the original week dating was "Heaven service day 1", "Heaven service day 2"... 7th day being, "Heaven Service day Heaven service day", which points out that God rested on 7th day, so the 7th day was special and points out that Chinese weekdating have same source as ours as well as basically rest of the worlds.
Then later (was possibly after communist party came to lead, cant remember right now for sure) they changed it to "day 1", "day 2" etc. but they still have 7th day as "Day Heaven service day" even today.

So we see holidays as 7th days and since 7 is holy number and all it brings positive associations.

And of course we can also suggest that maybe number 7 is designed inside us by God to be one prove of Himself.

Youd be amazed how much you can find with numbers from bible.

Stuff like each gospel having some words that appear in no other gospels than on them and they appear number of times exactly dividable by seven, and amount of those unique words are also dividable by 7, and so on.

No to mention, name of God, Jehovah (or what ever way it is actually written), how many letters in that name? Not sure if that applies to original language word.

7 7 7 7 7 7 7, all around bible.

If i also correctly remember, 7 is the amount of different things that people can handle at once effectively by their brains.

Meaning that you have 7 departments in your company, that you can still easily handle in brain level, but if there comes 8th, then its trouble already.

That instead of having 8th fepartment, you need to associate that 8th one with one of the other departments, and that way you can once again handle with your brains effectively.

In way of say, theres Planes, Trains, Automobiles, Motorcycles, Buses... you can handle that as long as there 7 different.

You can also handle more in those subcatoegories as long as you can come from top to down.

For example you take category motorcycles, and you divide that in to 7 different subgroups of Scooters, Motorcycles, Harley Davidsons...

And then you can once again divide them into 7 subgoups ie. Origin of Scooters, American Scooters, Chinese Scooters, German Scooters.

But when there comes the eigth one, then the efficiency to handle it goes down greatly.

cant remember that study, but thats how i recall it from memory that it went.

[davesh]

Hi all,

Buy this and buy that...

Buy ppc bully, mass control, ppc classroom, GCD all seems to be too good to buy....

really confused !!!

[joshril]

When I see a price ending in "7", I automatically think... "another worthless ebook". I do offline business and do well with prices ending in "9".

[malcasid]

Stuff in the Internet Marketing niche usually does well with prices that end in 7s. This is not necessarily the case outside of the IM niche. I see a lot of products ending with 9s outside of the IM niche.