ie: An item priced at $37.95 will sell more than the same item at $39.95, or even at $35.95 (not sure of the exact numbers here - just an example). The idea was, at certain price breaks, people see value and cheap price at the same time. A lesser-priced item is perceived to be of lower value, while adding a small amount to the price (sometimes only a few cents) will cause people to perceive the item to be of higher value, yet still at a cheap price.
Has anyone heard of this? Anyone know any of the optimum price beaks for best sales?