Cool Pricing Strategies – The Power of 9

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Head over to practically any store around, be it online or not, and you’ll see prices that end in “9″ everywhere.

While we all have heard of the reasons why it’s used (to make the price look lower)

How does it really appeal us?
Are people really that affected by a $99 price point versus paying $100?

Needless to say, the tactic works perfectly, and this type of pricing where prices end with 9, 99 etc are called “Charm Prices”.

In his book Priceless, William Poundstone dissects 8 different studies on the use of charm prices, and found that, on average, they increased sales by 24%versus their nearby, ’rounded’ price points.

Experiment by MIT and the University of Chicago

In this experiment, a standard women’s clothing item was tested at the prices of $34, $39, and $44. To  the researchers’ surprise, the item sold best at $39, even more than the cheaper $34 price.

So Is there anything that can outsell No. 9?

Researchers have found that selling prices that emphasize the original price, then the discounted price do seem to beat out number 9 when split tested.

In the image above, the price point on the left won.

So apparently, 9 can be defeated with a sale price…

I don’t think so..

The number 9 still comes out on top when it is used in cohesion with a Selling price, and the discounted price ending with 9.

In another split test, the sale prices was used ending in ’9′, and it ended up performing best of all:

And there it is.
Given similar circumstances, given even a less expensive option, it seems that the power of 9 still takes hold.

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