Interesting pricing insight

I don't know about IM products but I sell all my high end physical products with a 9 and it's been better than the 7. JMHO. Chuck

Doesn't surprise me. It would have been a much better test if he'd tested $39.95 against $39.97

Tom

I've got a membership site and up till now 9 is better than 7...

Cheers,

~Gary

Agree with BigMike. Each market is also different so we cant take it log stock and barrel.

As a Kiwi (down under in New Zealand) I have always found that "7" an oddball pricing thing. Someone enlightened me recently that a few years back some marketers tested it and found pricing ending in "7" outperformed other figures. Of course every man and his dog copied that so it became the norm. Down under we're accustomed to the "9" (eg: $9.99/$1,999.99 etc) which obviously followed the same pattern. Who knows, perhaps Ryan mentioning $39.95 might see sales coming through in the $XX.95 or $XX.99 range. Not too many years ago everything in the US was $XX.98 and some of you might be old enough to remember. Pricing like any other part of marketing is a form of "white lies" that told often enough become fact. Regardless of whether it's "7" or "9" or every seller just bounces around at sixes and sevens at the end of the day the consumer will tell you what is acceptable. So as others have suggested TEST is the keyword.

I think it's a sign of the times. Everyone is now looking for discounts and the cheapest prices possible - that's why all these coupon sites are doing so well.

I don't think the difference in conversion was necessarily caused by ending the price in the number '9' as opposed to the number '7'. I think the reason for the big difference would have been the use of the two digits AFTER the decimal point. Using a price such as $37.77 as opposed to just $37.

Which of those two prices above look more exact to you? Which of those two prices above, from first glance, look like more of a discount type price to you? The first one definitely stands out to me.

The whole dollar amounts that ended with a 7 did work well a few years ago... but if you think about it, to me a price that has the two digits AFTER the decimal point seems more exact thus giving the impression of a reduced price or discount.

We are creatures of habit. Think about all the prices you see in catalogues and shop windows when someone is having a sale. They are almost always in that same format of using the two digits after the decimal point. Even when selling things such as cars, they won't just price it 30,000... they'll use a figure like 29,997 because it looks more exact.