Pricing

[Chris@Crane]

Not sure if this is in the right place, sorry if it isn't.


I've been reading around / looking at websites and some say you should price an item at £9.99 rather than £10 because it seems cheaper...

Personally I'd rather pay £10 - It gets annoying dealing with odd pennies everywhere, and I just think it's easier to tell what you'll be paying!

What do you guys think?

 

[Moneyman]

Personally i think it looks more "honest" and a fiver or tenner better than £9.99 but £99.99 looks less than £100.
However if you are on price comparison websites the penny is critical.

 

[AuctionMaster]

Personally I'd rather pay £10

In business our personal feelings and opinions don't count -- what counts is what pulls in more sales.

It's been proven by analyzing sales volume that figures ending with 7 and 9 convert better - simple as that.

17 or 19 will perform better than 20.

And, by the way , 19.95 will outsell 12.95
29.95 will outsell 19.95

Other good price points are 39.95, 69.95, 97, 197, 297 and so on.

But it will certainly depend on your market as well, so the best advice is to: test, test and test!

 

[Chris@Crane]

Yeah I realise on certain platforms it's more important, but I was just thinking personal preference really.

I think it's patronising when adverts say 'now under £100!', and the product costs £99.99

 

[Chris@Crane]

In business our personal feelings and opinions don't count -- what counts is what pulls in more sales.

It's been proven by analyzing sales volume that figures ending with 7 and 9 convert better - simple as that.

17 or 19 will perform better than 20.

And, by the way , 19.95 will outsell 12.95
29.95 will outsell 19.95

Other good price points are 39.95, 69.95, 97, 197, 297 and so on.

But it will certainly depend on your market as well, so the best advice is to: test, test and test!

That's interesting, where / when was this proven?

 

[AuctionMaster]

it looks more "honest"

yes, it does. But you know? The whole marketing thing is 'dirty' - it always tries to trick the potential customers, do some tricks etc.

That's a sad fact, but were all marketers honest - we wouldn't see such commercials on TV like these days, there wouldn't be sales and discounts in shops etc.

Oh yes - by the way - look at what's happening offline. Do you often see prices like 10, 15 and 20? Of course not! It's always 9.99, 14.95, 19.95 etc.

If honesty worked better, I don't think such strategies would still exist.

The bottom line here is: don't mix your emotions with business - what you like best or not. Do what makes you more profit.

 

[AuctionMaster]

That's interesting, where / when was this proven?

I'm holding a thick online marketing course on my lap right now and quoted what's said in there.

It's called 'Insider Secrets To Marketing Your Business On the Internet' by Derek Gehl. He's one of the top Internet marketers from Marketingtips.com.

Thanks to his advice I've been able to run my online ventures successfully.

 

[Mister B]

That's interesting, where / when was this proven?

Never read it in a book, only experienced it in real life

At the large retailer where I used to work, we used to analyse price points all the time, moving prices until we found the optimum price. On some occasions, pushing the price into the next "price point" had no negative affect on sales at all, merely inflated our margin.

Sell it for what you can get and live well

Mister B

 

[Chris@Crane]

fair enough, I agree that .99 / .97 / .95 prices would be better online as it looks cheaper etc, I just don't like buying products for awkward prices in person


the only place I can think of is clothes shops, Primark, Burton etc all have £x prices.

 

[Coppock]

In business our personal feelings and opinions don't count -- what counts is what pulls in more sales.

It's been proven by analyzing sales volume that figures ending with 7 and 9 convert better - simple as that.

17 or 19 will perform better than 20.

And, by the way , 19.95 will outsell 12.95
29.95 will outsell 19.95

Other good price points are 39.95, 69.95, 97, 197, 297 and so on.

But it will certainly depend on your market as well, so the best advice is to: test, test and test!

I'd always been told that anything ending in .97 looks a lot less psychologically

 

[Moneyman]

I have heard the exact opposite and seen it in shows where there is only one item on offer and you want a quick sale. All those people with the pitches flogging food graters or magic paint rollers. if it is live and one item a fiver. it sounds quick and convenient.
The £4.99 probably works best on the pick and put in basket sale, where you are not time constained and buying multiple items.

 

Don't ask me why but prices ending in 7 have been proven to be the winner.

Earl

 

[Matt1959]

Tesco currently have end of aisle shelves stacked with special offers and everything is priced to the pound with big yellow price cards ie bar of chocolate £1, something else £2 and so on. It gives the impression they've bought a job lot and selling it off cheap....

 

[directmarketingadvice]

I think it's patronising when adverts say 'now under £100!', and the product costs £99.99

It's not "patronising", it's true.

And, as long as you're being honest - and assuming you believe people will benefit from what you're selling - then you've the right to frame your offer in whatever way makes it most attractive.

And, "attractive" means "in the way that people are most likely to respond to it".

(as long as you're being honest)

Finally, on the subject of price points, 7 beats the others by an average of 13%.

(this was mentioned in the newsletter I sent out yesterday... along with things that increase conversion by 31%, 34%, 14% and 15%)

Steve