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Optimum Price Breaks - Magic Numbers?

by cjreynolds
10 replies
Back when I had my first brush with IM (2001), I was told that there were certain optimum price levels, "magic numbers", that could increase sales for a product.

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?

joe
#breaks #magic #numbers #optimum #price
  • Profile picture of the author Matt Morgan
    Originally Posted by cjreynolds View Post

    Back when I had my first brush with IM (2001), I was told that there were certain optimum price levels, "magic numbers", that could increase sales for a product.

    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?

    joe
    Ending a number in 7 is an attractive selling number

    $7
    $17
    $27
    $37
    $47
    $67
    $77
    $97
    $197
    $297
    $497
    $997
    $1997
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  • Profile picture of the author internetsecretbook
    Sellers, marketers, and businessman like to use the amount $xxxx.95 to let their would-be clients perceived how cheap their product is but most Internet marketers will use the "magic number" 7 to touch the heart of their would-be clients. They use the following amount: $7.00, $17.00, $27.00, $37.00, $47.00, $97.00, etc. depending upon the value of their digital products.
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  • Profile picture of the author WillR
    I hate to sound like a broken record but...

    The only way you will know for sure which price works best for you is by testing them with your own product in your own niche. We can all speculate as much as we want - but we are not your typical customer. Let the customers tell you the price they prefer.
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  • Profile picture of the author James Foster
    Of course testing is always needed...

    But really, the optimum price is the most money you can justify based on the offer you give.
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    • Profile picture of the author cjreynolds
      Originally Posted by James Foster View Post

      Of course testing is always needed...

      But really, the optimum price is the most money you can justify based on the offer you give.
      I like your take - Thanks everyone! You guys rock!

      joe
      Signature

      I just added this sig so I can refer to it in my posts...

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