Here are some of the tricks of the trade and things to be mindful of whether you are a consumer buying or a businessperson selling.
According to behavioral psychologists and marketing specialists, approximately 90% of prices end in 9 or 5. Three digits (0, 5, 9) account for nearly 97% of all price endings.
Several things happen when you see $9.99:
• We tend to round down to the nearest round figure, in this case 9. Rounding upward involves an additional mental decision vs. simply storing the first digit in your head.
• We read from left to right and are more likely to retain the first number in a sequence before mentally checking out..
So in the case of $9.99, a consumer will likely recall the price is $9.00.
Because we focus on the first number and tend to round down vs. up, an item will sell better at $8.75 than the same item priced at $9.00.
By extension, an item priced at $8.25 will likely sell just as well as the same item priced at $8.00. If you have your own business, keep this in mind, when pricing your products.
As numbers get higher, so do the pricing stakes. In the case of these three numbers ($750 vs, $825 vs. $675), consumers will view them as roughly the same -- over $500.
They will not start to view them differently or balk at the price until it hits $900, at which point it may be viewed as nearly $1,000.
To get more information, check out http://usat.ly/Uolwtm.