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  1. #1
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    Article on Pricing??

    A while back i read an article about how the way you write your prices effects sales.. i cant find it now to save my life.. Does anyone have any idea what im talking about?

    For example it talked about the difference in the viewers eyes as opposed to seeing 9.50 vs. 9.95 as a price and wich they are more likely to buy.
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  2. #2
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    I believe I had read something like that too in the past. I tried googling it but did not find anything. The only thing I remember is that $9.95 is better than $10, because most people will compute it as $9, so they will feel they are saving.

    Same thing when you see offers on bulletin boards on the road for $999 instead $1000, 3 digits do not frighten customers like 4 digits do.

  3. #3
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    Yep thats what i was talking about, i cant find it now though anywhere..
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  4. #4
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    Yes these playing with words are used in the shopping world and they are not confined to the web actually. For years, shopkeepers are using price tags wisely for attracting visitors and web hosting area too is one of the zones to try this method.

  5. #5
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    Just found this, although there are many others I am sure

    Effect of right price digit

  6. #6
    If your running a web hosting business you should know this stuff It's called psychological rricing. Setting prices has also must take into account, 1. Competitor pricing 2. your hosting expenses. What i see most important is option 2 where you need to set a miniumum ammount of where people first pay off your hosting expenses.

  7. #7
    Join Date
    Mar 2004
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    In business schools, "Power Pricing" by Dolan is seen as one of the best texts specifically on pricing. Your local library should have a copy if you don't want to buy it.

  8. #8
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    I've had the best luck with $x.99 and $x.95 pricing in the past. However, I've seen a couple other tactics as well. As part of a branding tactic, one could price *all* products at, say, $x.66. Or $x.88.
    Josh Ewin, Managing Editor
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  9. #9
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    Our prices are set at $4, $9, $15, and $25.
    I know about this psychological pricing, but I wanted to do the opposite =)
    Hopefully sales aren't adversely affected too much.
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    @AnthonyGears

  10. #10
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    Really, it doesn't affect clients VERY much. I have seen people go for $10, $9.54, etc. It doesn't really matter because most people look at the exact number, nothing more, nothing less.


  11. #11
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    There is a whole lot of psychology associated with pricing, and "tricking" clients, as well as social expectations.

    a brief summary would be
    .99 is seen as penny pinching
    .95 is accepted
    .97 is used almost exclusivey by scammers
    .50 engenders trust
    etc
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  12. #12
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    It is not relevant if you are trying to provide premium products/services though...
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  13. #13
    mine are all in $x.85

  14. #14
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    Quote Originally Posted by sinohosting View Post
    It is not relevant if you are trying to provide premium products/services though...
    Still, wouldn't the impact of $999 be different than $1000?

  15. #15
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    Quote Originally Posted by arbet View Post
    Still, wouldn't the impact of $999 be different than $1000?
    Yes, $999 looks like a salesmans scam, $1000 looks more professional It all depends on what you're selling, who to, what *their* perceptions are etc.

    Fords advertise cars "from 3950"
    Saab advertise cars as "from 11 thousand"
    take from that what you will
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