Pricing and Prices...

[xwindowuser]

I have noticed certain numbers used for pricing, is there some psycological importance to prices such as 97$ or 17$ or any other number? thanks.

[findtips]

Absolutely! There have been many psychological/marketing studies done on this and they're always a great read. It's all on Google.

[xwindowuser]

Originally Posted by findtips

Absolutely! There have been many psychological/marketing studies done on this and they're always a great read. It's all on Google.

could you point me to a couple that you know of?
I would appreciate it...

[Kat Fuschillo]

Always end your price with a 7.
It really works.

[Bruce NewMedia]

One of the long-time direct response marketers that espoused the "Price ending in 7" was Ted Nicholas. Don't know if he still practices thats.
_____
Bruce

[Joygold]

This is one of the first things you learn when you start out with direct marketing lessons.

Although there are other opinions out there.

Here is a wonderful report on price points: You can find it by searching google for "price point report"

If you think about it logically. It can't be good just to make every price end in 7. Otherwise every store would have every price end in 7.

Even Walmart, which is known for having many prices end in 7, does not have EVERY price end in 7.

Why do stores, which have been around longer than any of us, with larger budgets to conduct tests, end prices with other numbers? Such as $29.99 or $19.95

Are they just missing the boat by not making it $27 instead of $29.99?

I doubt it. Perhaps ending in 7 works better for direct marketing.

However, everything goes back to the cardinal rule....

Test it for yourself!

Maybe you will do a test and see that making the price $29.99 adds 8% to your bottom line, or maybe making the price $27 will give you the bump. Nobody knows until you test, but check out the report I mentioned above for a different take on it than just blindly going with 7

[findtips]

Originally Posted by xwindowuser

could you point me to a couple that you know of?
I would appreciate it...

With respect, it's been 7 or 8 years since I read about this. I don't have time to do your research but I feel certain you'll find it on Google. Most everything is there. - Good luck!

[findtips]

Originally Posted by Joygold

Even Walmart, which is known for having many prices end in 7, does not have EVERY price end in 7.

Why do stores, which have been around longer than any of us, with larger budgets to conduct tests, end prices with other numbers? Such as $29.99 or $19.95

Are they just missing the boat by not making it $27 instead of $29.99?

I doubt it. Perhaps ending in 7 works better for direct marketing.

However, everything goes back to the cardinal rule....

Test it for yourself!

Like everything... it's relative. I use all variations personally. Otherwise you risk being obvious. Can you imagine if everything in your store followed the "7" rule?

[designfuschion]

Originally Posted by Joygold

This is one of the first things you learn when you start out with direct marketing lessons.

Although there are other opinions out there.

Here is a wonderful report on price points: You can find it by searching google for "price point report"

If you think about it logically. It can't be good just to make every price end in 7. Otherwise every store would have every price end in 7.

Even Walmart, which is known for having many prices end in 7, does not have EVERY price end in 7.

Why do stores, which have been around longer than any of us, with larger budgets to conduct tests, end prices with other numbers? Such as $29.99 or $19.95

Are they just missing the boat by not making it $27 instead of $29.99?

I doubt it. Perhaps ending in 7 works better for direct marketing.

However, everything goes back to the cardinal rule....

Test it for yourself!

Maybe you will do a test and see that making the price $29.99 adds 8% to your bottom line, or maybe making the price $27 will give you the bump. Nobody knows until you test, but check out the report I mentioned above for a different take on it than just blindly going with 7

I was doing some research on pricing and came across this thread(yea i know it's an old thread.

Having completed a retail certificate and worked in retail I can shed some light on why stores have different price points.

Online for digital products there isn't the overhead costs that offline retailers have to carry. It makes sense that certain 'types' provide more percieved value,therefore different price points.

In retail,there are lots of factors that determine a products price.
Cost of the product is a huge one. followed by markup.
When i was working as a sales assistant, products might have been originally priced at say $19.99 (here in oz at least,9 works not the 7)i would be told to mark down to $19.88. Why? It was store policy,which when the price was entered at the checkout they could track exactly what was discounted. It didn't stop at 8. There was several digits at the end of the price tag that was code for something. There was a minimum number if i remember correctly,and if the item didn't sell at that price point the products were removed and disposed of to make way for new discounted stock. So yea it's not a random thing when a price is ending in say $19.93.

Also,in australia becuase of no 1c and 2c coins(they went out in '92) prices are reduced according to round up. So instead of pricing a product at $20 -19.99 looks cheaper. at the checkout though you still pay the extra cent. That's why at least here,unless the price is a solid 10 or 20 or 19.95 it doesn't matter if it's 19.97 or 19.93 you pay the extra cents.

To the big stores it actually doesn't make much difference to them offering a product for 27 or 27.99. It's just another measure to inventory track across departments and get customers to buy.

[Louise Green]

Lucky number 7.

It's a form of trigger, actually it's probably a couple of rolled into one.

The number 7 makes (most) people feel good about something, and it keeps the price well under a milestone (in pricing).

I've tested this over and over, the number 7 wins every time.

Some will claim that "some guy said 7 rocks a million years ago, and now everyone just copies" - which might be true, but there is good reason to!

[mikeyman120]

I also read it somewhere online that 7 worked best. I have all my products ending with 7 and have for a few years now.

Mike