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Thread: Article on Pricing??
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01-05-2008, 05:06 AM #1Web Hosting Master
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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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01-05-2008, 06:07 AM #2Web Hosting Evangelist
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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.
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01-05-2008, 06:15 AM #3Web Hosting Master
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Yep thats what i was talking about, i cant find it now though anywhere..
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01-05-2008, 06:19 AM #4Web Hosting Guru
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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.
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01-05-2008, 06:20 AM #5Web Hosting Evangelist
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Just found this, although there are many others I am sure
Effect of right price digit
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01-07-2008, 03:59 AM #6Disabled
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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.
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01-07-2008, 10:05 AM #7Web Hosting Master
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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.
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01-07-2008, 03:09 PM #8Junior Guru Wannabe
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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
Web Hosting Madness
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01-07-2008, 07:48 PM #9Junior Guru Wannabe
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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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01-07-2008, 09:11 PM #10Web Hosting Master
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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.
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01-07-2008, 10:26 PM #11Web Hosting Master
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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
etcRob Golding Astutium Ltd - UK based ICANN Accredited Domain Registrar - proud to accept BitCoins
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01-07-2008, 10:59 PM #12Premium Member
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It is not relevant if you are trying to provide premium products/services though...
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01-08-2008, 06:03 AM #13Disabled
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mine are all in $x.85
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01-08-2008, 08:25 AM #14Web Hosting Evangelist
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01-09-2008, 03:35 PM #15Web Hosting Master
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Rob Golding Astutium Ltd - UK based ICANN Accredited Domain Registrar - proud to accept BitCoins
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