A Penny Saved: Psychological Pricing

Re:A Penny Saved: Psychological Pricing by CyrusL on Friday October 18, 2013 @09:25PM (#6574946)

I am hesitant about the value of the data in the chart. It sounds like out of all the products sold via Gumroad, the .99 products convert better than the .00 products. Couldn't that just mean that the sellers who use .99 are savvier with pricing and probably also doing other things to market their products better?

Better data would be the same product sold in .99 and .00 versions. I imagine the conversion rate differences wouldn't be so dramatic in that chart.

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Re:A Penny Saved: Psychological Pricing by pbreit on Friday October 18, 2013 @10:10PM (#6575066)

Good point. I'm sure studies have been done and merchants set such prices accordingly.

This guys appears to have reviewed a number of studies and concurs. BUT...he also thinks that "round" pricing may support luxury branding better. That's partly why you probably can't do simple pricing difference between the same product at the same store.

http://www.sciencedaily.com/releases/2011/09/110906144036.ht...

More about the topic: http://www.quora.com/Pricing/Do-prices-at-99-instead-of-1-00...

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