Why Does $10 Look So Much Cheaper Then $9.95

69 replies
Ever notice this? The other odd question I have is what's up with the number 7? Many products in IM (not only WSO's) are $7, $17, $27 etc.

In some of the testing I've done in products outside of the IM niche I find that I will sell more of the same product at $27 as compared to $19. I'd love to learn more about Price Point Psychology.
#$10 #$995 #cheaper #product creation #wso price
  • Profile picture of the author mojojuju
    No way. $10 is a lot. $9.95 is a lot cheaper.
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  • Profile picture of the author templarjustice
    Actually, a price point of $9.95 sells better than $10. Not sure where you got your info on $10 vs. $9.95.
    If you go to any retail store (ie: Walmarts, Superstores), you will find more products that end in $xx.95 vs. a solid $xx.00 price.
    The psychology for retailers is the savings factor which has been tested throughout all history.
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  • Profile picture of the author Kory Pearman
    I don't truly get it to be honest. If I'm going to buy something.. I don't care if it's $9.95 or $10... I'll buy it..

    I'm not going to see $10 and be like "omg no way that's too much!!!"...

    I get how it's "supposed" to look cheaper.. but eh.. I guess it works.. obviously.
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    • Profile picture of the author Gaz Cooper
      Originally Posted by korypearman View Post

      I don't truly get it to be honest. If I'm going to buy something.. I don't care if it's $9.95 or $10... I'll buy it..

      I'm not going to see $10 and be like "omg no way that's too much!!!"...

      I get how it's "supposed" to look cheaper.. but eh.. I guess it works.. obviously.
      It Pysochological you might not care but your subconcious mind does LOL and I bet if I put 2 identical products in front of you and you without thinking will be drawn to the 9.95 one for sure

      Its a really interesting subject for sure

      Gaz Cooper
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      • Profile picture of the author Dan C. Rinnert
        Well, in binary, $10 is really $2, so that's about 1/5th the price of $9.95.
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        • Profile picture of the author johndyer42
          It is tied to the psychology of judgement and decision making. The unconscious human mind responds better to specific number than generic numbers, AND remembers them more easily. A old boss of mine would send us out on deliveries and tell us that we need to be back by 4:26, or some random time, but it really did help us remember what time to be back more than if he just said 4 or 5.
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        • Profile picture of the author CDarklock
          Originally Posted by Dan C. Rinnert View Post

          Well, in binary, $10 is really $2, so that's about 1/5th the price of $9.95.
          There are 11 kinds of people in the world.

          Those who understand binary, those who don't, and those who try to tell this joke out loud.
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  • Profile picture of the author Genghis John
    I cannot discern a difference, honestly. I have always believed the value slightly less than the whole dollar amount is cheaper in appearance, because this tactic has been around forever.
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    • Profile picture of the author freemen14
      I understand that in the retail industry the 9.95 method works. I owned a store for three years a long time ago and used that method. But there seems to be a difference in the online world when it comes to digital products. I have read a few links on this in the wf a while back and I should try to find them again.

      Maybe i'm the only the one who feels this way. Maybe it's a pointless thread. But if so, even on the WF, why don't we see many $7 wso's at $6.95? or $27 products at $26.95? I'm not making a statement by that question but rather asking a question with that question if you know what I mean.
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      • Profile picture of the author Kory Pearman
        Originally Posted by freemen14 View Post

        I understand that in the retail industry the 9.95 method works. I owned a store for three years a long time ago and used that method. But there seems to be a difference in the online world when it comes to digital products. I have read a few links on this in the wf a while back and I should try to find them again.

        Maybe i'm the only the one who feels this way. Maybe it's a pointless thread. But if so, even on the WF, why don't we see many $7 wso's at $6.95? or $27 products at $26.95? I'm not making a statement by that question but rather asking a question with that question if you know what I mean.
        I read a thread on here somewhere where the guy said research was done and the number 7 appeals to the eye the most.. Eh, that's what the thread said anyways.
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        • Profile picture of the author FredJones
          Why not $9.97 or $7.97 for that matter?
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          • Profile picture of the author freemen14
            Originally Posted by FredJones View Post

            Why not $9.97 or $7.97 for that matter?

            Sure. I'm using the .95 number as an example. I'm still looking for the thread which dealt with this. It explained it much better than I have.

            In any case I am launching a couple of products in the next few weeks. One in the IM Niche and one in the magic niche which is more a for fun marketing project I have going on. I was looking for some feedback on the technical aspect of price points.
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            • Profile picture of the author KevinTorrence
              Another part of the puzzle as to why "it works", is because the market / buyers have been "trained" to expect it with repeated use. You kinda just go with the flow and do what seems to work.

              In IM the "7" was preached so much, and is still used so much, it becomes the standard, whether or not there's truth to it. Same thing with $X.95 in the retail world. Sure that's not the full answer, but it's part.

              Sometimes going against the grain is too bizarre for buyers & becomes a turn off. Sometimes not. (Now that's a "sittin' on the fence" reply! )
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              • Profile picture of the author freemen14
                Originally Posted by KevinTorrence View Post

                Another part of the puzzle as to why "it works", is because the market / buyers have been "trained" to expect it with repeated use. You kinda just go with the flow and do what seems to work.

                In IM the "7" was preached so much, and is still used so much, it becomes the standard, whether or not there's truth to it. Same thing with .95 in the retail world. Sure that's not the full answer, but it's part.

                Sometimes going against the grain is too bizarre for buyers & becomes a turn off. Sometimes not. (Now that's a "sittin' on the fence" reply! )
                A good reply. I agree that our eyes have been trained to the number 7 in terms of price point.
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                • Profile picture of the author goindeep
                  Just do what the gurus do

                  I think they call it "Modelling" dont they?

                  My mrs always sees a price as lower and i always have to point out its actually higher then it seems.

                  Che will see $69.95 and then say "Oh, look its only 60 bucks" so i guess what ever tactic is used the lower the price looks the better.

                  In fact a dude on the show 'The Gruen Transfer' (aussie marketing show) said that xx.95 is always better then xx.00

                  Id like to know more about price psychology too, especially online.
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                  • Profile picture of the author Serendipitous
                    Originally Posted by Andrei Rotariu View Post

                    Che will see $69.95 and then say "Oh, look its only 60 bucks"
                    I ALWAYS round up to $70 in my head, I ALWAYS round up the nearest whole dollar.

                    I hate this tactic.
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                    • Profile picture of the author mrdomains
                      Most will disagree.

                      9.xx has more appeal than 10 to most people.

                      But, you may also find that 11 also works better than 10 just as 21 converts better than 20

                      It all depends on what you are selling. Test, test, test, to find where your product sweetspot is.
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                    • Profile picture of the author Robert Puddy
                      Originally Posted by Serendipitous View Post

                      I ALWAYS round up to $70 in my head, I ALWAYS round up the nearest whole dollar.

                      I hate this tactic.
                      This is why it works though, most people asume the vendor is price gouging if they see a round number

                      It looks like the vendor did what you did in your head rounded it up.

                      The same with statistics... if you say 95% of people will blah blah... then the reader wont believe it

                      but if you said 94.76% of people believe blah blah... they will believe it

                      Rounded whole numbers look made up, while numbers with decimal points look real
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                • Profile picture of the author paulie888
                  Originally Posted by freemen14 View Post

                  A good reply. I agree that our eyes have been trained to the number 7 in terms of price point.
                  For the most part, even without a 7 at the end, I feel that pricing something right below a round number (i.e. 19.99 versus 20 and 99.99 versus 100) tends to convert better as people psychologically see it as significantly less than the next higher round number (even though this doesn't really make any sense at all).

                  On Clickbank, I find that the last decimal on product prices is almost always a high number (i.e. $37, $47, $67) and very seldom a low number, and I suppose that this pricing strategy must have some merit, since just about everyone is utilizing it.
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              • Originally Posted by KevinTorrence View Post

                Another part of the puzzle as to why "it works", is because the market / buyers have been "trained" to expect it with repeated use. You kinda just go with the flow and do what seems to work.

                Same thing with .95 in the retail world. Sure that's not the full answer, but it's part.
                I agree Kevin.
                People have been hammered in the head with .95 at the end of a price, so it subconsciously works.
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            • Profile picture of the author FredJones
              Lol, I am launching my first ever product-WSO soon (had a service-WSO and other services in the hires section running earlier), and I am also thinking to make the price points as $x.97 - I could have gone for $x.95 but why leave my 2 cents out? And still in 2 minds about whether $x.99 looks to close to $(x+1) or whether to price it $x.99 rather than $x.97 and grab the two additional cents - as they say, never leave any money on the table no matter how small that might be

              Originally Posted by freemen14 View Post

              Sure. I'm using the .95 number as an example. I'm still looking for the thread which dealt with this. It explained it much better than I have.

              In any case I am launching a couple of products in the next few weeks. One in the IM Niche and one in the magic niche which is more a for fun marketing project I have going on. I was looking for some feedback on the technical aspect of price points.
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  • Profile picture of the author Mohammad Afaq
    Well actually 9.97 or 9.99 looks better than 10. Actually $27,997 looks better than $28,000

    Trust me, I know from experience. I was recently looking for a car and my mom skipped over all the cars that were marked at $28,000 and she decided to test drive a car that was marked at $27,997 because this was more in my range

    So subconsciously we tend to think 9.97 is cheaper than 10.
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    • Profile picture of the author freemen14
      Originally Posted by Mohammad Afaq View Post

      Well actually 9.97 or 9.99 looks better than 10. Actually $27,997 looks better than $28,000

      Trust me, I know from experience. I was recently looking for a car and my mom skipped over all the cars that were marked at $19,000 and she decided to test drive a car that was marked at $27,997 because this was more in my range

      So subconsciously we tend to think 9.97 is cheaper than 10.

      Thanks Mohammad. Good example. Do you price your products this way in the IM world?
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      • Profile picture of the author Mohammad Afaq
        Originally Posted by freemen14 View Post

        Thanks Mohammad. Good example. Do you price your products this way in the IM world?
        Well I made a mistake there. It was supposed to be 28k and not 19k but I think you can figure it out.

        Yes I do price my products like that in IM. I have tested different price points and the regular 7, 17, 27, 9.99 etc. work best so I will keep at it.

        When I start seeing better results with .00 I will start using them
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    • Profile picture of the author Steve Wells
      Originally Posted by Mohammad Afaq View Post

      Well actually 9.97 or 9.99 looks better than 10. Actually $27,997 looks better than $28,000

      Trust me, I know from experience. I was recently looking for a car and my mom skipped over all the cars that were marked at $28,000 and she decided to test drive a car that was marked at $27,997 because this was more in my range

      So subconsciously we tend to think 9.97 is cheaper than 10.
      Well, in all reality 9.97 IS cheaper than 10.00
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      • Profile picture of the author Mohammad Afaq
        Originally Posted by Steve Wells View Post

        Well, in all reality 9.97 IS cheaper than 10.00
        Well true dat
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      • Profile picture of the author paulie888
        Originally Posted by Steve Wells View Post

        Well, in all reality 9.97 IS cheaper than 10.00
        No doubt about that, however the human mind psychologically regards $9.97 as being a lot cheaper than it actually is (by a measly 3 cents), in comparison with $10.00.
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  • Profile picture of the author Daryl Lim
    I also think $10 seems cheaper than $9.95. 9.95 is 3 digits while 10 is 2, so I guess thats the point.
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    • Profile picture of the author PhoebeSmellyCat
      Originally Posted by Daryl Lim View Post

      I also think $10 seems cheaper than $9.95. 9.95 is 3 digits while 10 is 2, so I guess thats the point.
      I think you and I are the only ones that think this way. :p

      In fact, I don't consider '0' a number so to me it's 995 vs 1.
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  • Profile picture of the author donhx
    Originally Posted by freemen14 View Post

    Ever notice this? The other odd question I have is what's up with the number 7? Many products in IM (not only WSO's) are $7, $17, $27 etc.
    The "7" in IM pricing is like the secret sauce in a hamburger. It has extra special mojo to make sales go off the charts.
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  • Profile picture of the author J.M.Wilson
    I don't think round numbers convert higher than the .99 prices to be honest. Doesn't matter if it's online or off, decades gone by prove that large companies all price their products just under the round number and if it didn't work they would stop doing it.
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    • Profile picture of the author paulie888
      Originally Posted by J.M.Wilson View Post

      I don't think round numbers convert higher than the .99 prices to be honest. Doesn't matter if it's online or off, decades gone by prove that large companies all price their products just under the round number and if it didn't work they would stop doing it.
      That was exactly the point I was trying to make. Why buck a pricing trend that has been so thoroughly researched, tested and utilized?
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      • Profile picture of the author ECMartin
        People make decisions based on emotions. $xx.95 prices excite a better emotion than the solid prices.
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      • Profile picture of the author J.M.Wilson
        Originally Posted by paulie888 View Post

        That was exactly the point I was trying to make. Why buck a pricing trend that has been so thoroughly researched, tested and utilized?
        Precisely, these large corporations spend millions on this type of stuff so if it's good enough for them, it's good enough for me
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        • Profile picture of the author paulie888
          Originally Posted by J.M.Wilson View Post

          Precisely, these large corporations spend millions on this type of stuff so if it's good enough for them, it's good enough for me
          We are definitely thinking alike. I don't think I want to be the contrarian here just for the sake of being different!
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    • Profile picture of the author oneplusone
      The only way to know what will work best, is to test.

      Different markets will often produce very different results.

      It also depends on the positioning of your product or service, and many other factors.

      Don't go with personal feeling, or what anyone else says converted best for them.
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      • Profile picture of the author ECMartin
        Originally Posted by oneplusone View Post

        The only way to know what will work best, is to test.
        What is your attitude to testing price levels? To me, it seems pretty unfair to the customer and it could be counterproductive if you're trying to get a good reputation among your potential customers.
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        • Profile picture of the author oneplusone
          Originally Posted by ECMartin View Post

          What is your attitude to testing price levels? To me, it seems pretty unfair to the customer and it could be counterproductive if you're trying to get a good reputation among your potential customers.
          Customers rarely know in the first place, if you're price testing $47 v $97 say on a 1,000 list, 500 get offered the $47 price and the other 500 get the $97 price.

          On the rare occasions anyone does say anything, you simply be honest and tell them you were testing different prices.

          No need to beat around the bush.

          You can then give them the lower price (refund the difference) or give them something extra, as a gesture of goodwill.

          I've never had any issue with it, the key is to quickly determine which converts better (or is more profitable), then stick with it after you are certain you know the answer.
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  • Profile picture of the author wmcfer17
    It doesnt matter at all... All of us have their different points of views on a certain product. How can you say it is much more cheaper when a person bought your product have a tight budget and the other one is buying your expensive product, thinking that it has a lot of information or it can give them a satisfaction?

    As I can see, it always depends on us. We cannot formulate what is the best idea for others because we have our own so called pride.
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  • They say it's a psychological thing, but for me as a consumer it makes no difference if it's $10 or $9.95.
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    • Profile picture of the author ECMartin
      Originally Posted by Anonymous Affiliate View Post

      They say it's a psychological thing, but for me as a consumer it makes no difference if it's $10 or $9.95.
      ... you think Subconsciously, it works on anyone.
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  • Profile picture of the author Daveyz
    $10 definitely sounds more expensive than $9.95... Hence many people around the world use this pricing style.
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  • Profile picture of the author Alexa Smith
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    Originally Posted by freemen14 View Post

    I'd love to learn more about Price Point Psychology.
    Most of what you can learn is second-hand, out-of-date and unreliable, I think.

    It's one of these many areas where the overwhelming majority of people copy what other people are doing because it "must" work and there "must" be reasons for it - and maybe there were once, in another lifetime and in a different place and with different products and a whole different marketing approach.

    The limited testing I've seen, myself, showed me that $39 converted significantly better than $37, and that $12 converted significantly better than $7 ... so just call me a skepchick.
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  • Profile picture of the author Sparhawke
    It is because the number 7 is a magickal number that resonates and because someone probably mentioned years ago in an ebook that 7 do well with western people so over time it simply gravitated to that. People tend not to want to put their products $1 over to make it 98 but for some reason it just feels right now after all this time.

    If you had asked the question in China a few dozen times everyone would be asking themselves who this "crazy man is that keeps asking about all the 8's"
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    • Profile picture of the author Roy Penrod
      Back when I worked in retail management, I noticed people would tell their friends "Hey, it's only $9" when it was $9.99. And I've noticed the same thing when shopping with my own friends. They just seem to drop whatever is behind the decimal point.

      I'm not sure why we do it, but I suspect it has something to do with our innate ability to justify anything we want.

      Roy
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  • Profile picture of the author vishalduggal
    If you wanna know more just go to your nearest library and read more about humen psycholy of business.
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  • Profile picture of the author CDarklock
    Originally Posted by freemen14 View Post

    Ever notice this? The other odd question I have is what's up with the number 7? Many products in IM (not only WSO's) are $7, $17, $27 etc.
    The human brain rationally rounds to fives, but emotionally rounds to tens. And no matter what people tell you, in the natural course of human psychology five rounds down to zero - not up to ten.

    So when it encounters a seven, the rational brain rounds it to the nearest five, which is five. And then the emotional brain rounds it down to a zero.

    Which means that over a mass market, you can charge $17 for your product and people will make the "buy" decision as though it were a $10 product.

    And $10 feels cheaper than $9.95 because there aren't as many numbers in it. $10.00 still feels more expensive than $9.95, after all, even though it's just a nickel.
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    • Profile picture of the author Dan C. Rinnert
      Originally Posted by CDarklock View Post

      And $10 feels cheaper than $9.95 because there aren't as many numbers in it. $10.00 still feels more expensive than $9.95, after all, even though it's just a nickel.
      A nickel is a lot of money. That's more than double what my bank pays me in interest every month, and they don't even like to give that up because they take it right back--and then some--in fees.
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    • Profile picture of the author Marc Rodill
      Originally Posted by CDarklock View Post

      And $10 feels cheaper than $9.95 because there aren't as many numbers in it. $10.00 still feels more expensive than $9.95, after all, even though it's just a nickel.
      I'm confused about this part.
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  • Profile picture of the author moshecogan2
    I also think $10 seems cheaper than $9.95.
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    • Profile picture of the author deertrail
      $10 is only two numbers, while $9.95 is three.

      Plus, in aggressive markets like IM, a round number like $10 stands out as a non-hypey, "honest" price point.

      -Bryan
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      • Profile picture of the author Alan Petersen
        For me in the Internet marketing niche and for WSO's $10 sold better than $7 and $9.95 so now I price low-priced products for $10.

        In other niches it's another thing. And for higher price items I wouldn't go with an even numbered price point.
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        • Profile picture of the author Dan C. Rinnert
          Someone should test this.

          Give people a choice of paying $10 or $9.95. See how many pick each price.
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      • Profile picture of the author Lucas Adamski
        Originally Posted by deertrail View Post

        $10 is only two numbers, while $9.95 is three.

        Plus, in aggressive markets like IM, a round number like $10 stands out as a non-hypey, "honest" price point.

        -Bryan
        I think in IM market people got sick with $19.99 and similar prices and changed to $17 as it's more neutral, less used. Still in supermarkets 99 ending is pretty common. Why? Because it works!
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    • Profile picture of the author ry278
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      Originally Posted by moshecogan2 View Post

      I also think $10 seems cheaper than $9.95.
      Interesting, but would $1,000 seem cheaper than $995?
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  • Profile picture of the author Az Ozegbe
    Whether $10 or $9.95,I think if somebody is sold on your
    product,he is definitely going to buy no matter the price
    tag.
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  • Profile picture of the author 993rs
    There's also the phsycology of "perceived value" of a product. You could price a product at $7, $9.95, $10 but your best performer can be when its at $17.
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  • Profile picture of the author TelexTape
    When teaching my children about money, I always loved it when they would say "It's only 9 dollars." I'd tell them, hand the cashier 9 dollars and see if that works.

    Hopefully, I've taught them to not fall for the mental games advertisers play.
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  • Profile picture of the author jake244
    I don't know what it is about the number 7, but people like ted nichols raves about it - of course they have tested it time and time again.
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  • Profile picture of the author bestitrix
    May be some people might not see the decimal point between the two 9's at the first glance and thinking that its $995 instead of $9.95.
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  • Profile picture of the author Devid Farah
    I think that depends on people perception.
    In my experience i put products at $7 $9.95 $9.99 $17 $27 and $29.95 and sold a lot!
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    • Profile picture of the author Dan C. Rinnert
      This thread is still going?

      It's like a headache that just won't go away.

      Ten bucks isn't a lot anyway, so why not solve the $10 vs. $9.95 debate and just give the thing away for free? Hit people up for $37 on the upsell.

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  • Profile picture of the author kaybanks
    Can anyone recommend any good links regarding retail price psychology? It would be good to read what the so-called 'experts' say.
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  • Profile picture of the author LetsGoViral
    $9.97 looks the cheapest. There is something about putting 7 at the end of the price. Somehow these seem to sell the best or so I've heard.
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