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Keep the .95 or drop it?

by swamyg1
10 replies
I know this has been discussed a lot but I'd like to get some opinions on my specific pricing structure. All of our products cost over $100 and we've had the format like $139.95 in place for 5 years.

We are changing our branding in a number of ways and it's been discussed that we should drop the .95 from all of our pricing... To make all of our pricing like $129, $139, etc. What do you guys think about this... Is it a smart move? Does keeping the .95 look cheap and discounty?
#drop
  • Profile picture of the author Shane N
    Originally Posted by swamyg1 View Post

    I know this has been discussed a lot but I'd like to get some opinions on my specific pricing structure. All of our products cost over $100 and we've had the format like $139.95 in place for 5 years.

    We are changing our branding in a number of ways and it's been discussed that we should drop the .95 from all of our pricing... To make all of our pricing like $129, $139, etc. What do you guys think about this... Is it a smart move? Does keeping the .95 look cheap and discounty?
    I think it depends.

    What niche market are you in?
    Is it a physical product or digital?
    And where is it being sold?

    I find that when I sell on eBay, I end my prices with a "9" with NO cents. ($9, $29, $59, $99, Etc) - It works well because as we all know, $99 looks less than $100.

    However, $99.95 still looks like it's MORE than just $99... Because it is.

    With digital info products and in the IM niche, I've found that ending with a "7" works best, with no cents either. ($7, $17, $27, $37, $47, $97, Etc). Whenever I have changed them (for testing purposes) to end with a "5" or a "9" the conversions were not nearly as good. But, that's just from my personal testing with my products and services.

    Best,
    Shane

    P.S. - I do sell some of my short reports/ebooks for a price ending in ".97" which is still ending with a "7" such as $9.97 or $14.97. I find that $9.97 converts much better than $10, even though it's only a $0.03 cent difference!
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    • Profile picture of the author swamyg1
      Originally Posted by Shane Natan View Post

      I think it depends.

      What niche market are you in?
      Is it a physical product or digital?
      And where is it being sold?

      I find that when I sell on eBay, I end my prices with a "9" with NO cents. ($9, $29, $59, $99, Etc) - It works well because as we all know, $99 looks less than $100.

      However, $99.95 still looks like it's MORE than just $99... Because it is.

      With digital info products and in the IM niche, I've found that ending with a "7" works best, with no cents either. ($7, $17, $27, $37, $47, $97, Etc). Whenever I have changed them (for testing purposes) to end with a "5" or a "9" the conversions were not nearly as good. But, that's just from my personal testing with my products and services.

      Best,
      Shane

      P.S. - I do sell some of my short reports/ebooks for a price ending in ".97" which is still ending with a "7" such as $9.97 or $14.97. I find that $9.97 converts much better than $10, even though it's only a $0.03 cent difference!
      Yes, this brings up a good point that I forgot. My product is more of a luxury item... Human hair extensions. It's being sold online but we are also reaching into retail outlets... So pricing is very important right now. I definitely don't want to make it look cheap. So it sounds like dropping the cents is definite, now need to decide on a 9 or a 7... Not sure if the 7 would apply to my product though! Hmmm
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      • Profile picture of the author Shane N
        Originally Posted by swamyg1 View Post

        Yes, this brings up a good point that I forgot. My product is more of a luxury item... Human hair extensions. So I definitely don't want to make it look cheap. So it sounds like dropping the cents is definite, now need to decide on a 9 or a 7... Not sure if the 7 would apply to my product though! Hmmm
        Okay, now that we know the product, I am sure more people will chime in with ideas. I don't have experience selling hair extensions but check this out...

        I just Googled "hair extensions" and the 1st organic result looks like a serious site. It's also an EMD.

        Their pricing structure: is totally weird!

        They have hair extensions for prices like $114.75 and $191.25 - Whoa?!

        However, they also have a lot of flat dollar prices too, such as $10.00 and one for $210.00. But they display the "cents" even when they're ".00" but I have no idea how successful they are or what kind of testing they've done...

        After seeing that site, I would stick with flat dollar prices... and then hey, why not make something look just a little cheaper to give your customer even more incentive to buy (instead of $20, charge $19?).

        Best,
        Shane
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  • Profile picture of the author mchelle
    I would drop the 95 cents definitely. You may even want to consider pricing your products ending in the sevens. (ie: $137, $147) - people have become blind to 9s. I have a product priced ending in $5 that does pretty well also.

    There's an interesting thread about this here you might want to check out:
    http://www.warriorforum.com/main-int...nding-7-a.html
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    • Profile picture of the author SlfMastery
      I must agree with Shane two post above if you go the all dollar (and no cents) route. I forget which particular marketer emphasized it but he was selling only "$7" ebooks and was killing it.

      Another product I bought from Dr. Dan here also emphasized selling my services for $97, $127, etc. Shane's testing just supports this "7" phenomenon.

      The only right answer is the one YOU get from testing on YOUR products.

      Much success with your new branding!

      Charlie
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  • Profile picture of the author Linkology
    I have tested this in the past and I found better conversions without using cents in the price.
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  • Profile picture of the author martimoney
    Agreed here. I think 139.95 looks like more than 140 simply because of the number of digits. The extra two digits, even though they are after the decimal point, give the illusion to me that it is more. Test it and go with what produces results.
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  • Profile picture of the author CrisisCore08
    I think that on prices over 100$ people are looking a few times on the price so it dosn't really help,on cheaper prices I think that it looks better
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  • Profile picture of the author Josh Monroe
    When I used to sell product over $100 - $34.95 used to work well.

    So for example $134.95, $234.95 etc. Thats what I used after testing different price points and it seemed to convert the best.
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  • Profile picture of the author Anonymous Affiliate
    Quite frankly, I don't think you will notice any conversion difference between $139 and $139.95. I would drop it for simplicity.
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