Why is it 4.99 instead of 5 dollars?
Posted 1/10/15
Seriously, why stop at 99 cents?
59494 cr points
Send Message: Send PM GB Post
31 / M / Dallas, TX
Online
Posted 1/10/15

PeripheralVisionary wrote:

Seriously, why stop at 99 cents?


It's called psychological pricing.
8345 cr points
Send Message: Send PM GB Post
25 / M / UK
Offline
Posted 1/13/15 , edited 1/19/15

eyeofpain wrote:


PeripheralVisionary wrote:

Seriously, why stop at 99 cents?


It's called psychological pricing.


Correct. Everywhere does it. 4.99 sounds cheaper than 5.00 so people are more likely to buy it. Thats all there is to it.
43127 cr points
Send Message: Send PM GB Post
26
Offline
Posted 1/13/15 , edited 1/13/15
Its simply a sales tactic that's proven to work.

Let's say a store sells a item for $20.00
They put up a sale sign and list it as $19.99

No real marginal difference yet studys and real word data proves people will buy it more often then when it was simply $0.01 more.


Edited for a typo
5320 cr points
Send Message: Send PM GB Post
26 / F / itouch, ps3
Offline
Posted 1/15/15
I can't believe that physiological pricing works. xD
I mean I know it's proven I just never understood why it truely worked because if I see something for $1.99 I automatically read it out loud as $2 xD Pretty much anything that's 80cents or more I round it up to the highest number.

I guess it just depends on who's reading the price I guess, on which prices they read in which way.
26 cr points
Send Message: Send PM GB Post
F / Mishawaka, Indiana
Offline
Posted 1/16/15
The same thing happens to me.
59494 cr points
Send Message: Send PM GB Post
31 / M / Dallas, TX
Online
Posted 1/16/15

snoodles wrote:

I can't believe that physiological pricing works. xD
I mean I know it's proven I just never understood why it truely worked because if I see something for $1.99 I automatically read it out loud as $2 xD Pretty much anything that's 80cents or more I round it up to the highest number.

I guess it just depends on who's reading the price I guess, on which prices they read in which way.


Logically, you may be able to tell the difference, but on a lower level of the brain, the tactic could still be affecting your decisions.
37208 cr points
Send Message: Send PM GB Post
32 / M / Bellingham WA, USA
Offline
Posted 1/16/15
It never bothers me since I have to mentally tack on another 70 cents or whatever for sales tax.
18058 cr points
Send Message: Send PM GB Post
23 / M / United States
Offline
Posted 1/18/15
Fascinating. Here is how I look at things: $19.99 = Tax; $20 =/= tax .... In my experience, I usually run into things placed at the dollar at small vendors (eg: sweets at a college campus; homemade crafts at a fair; etc.)
Posted 1/19/15
Sadly the lower price is a thing, I remember watching an episode on "Gruen Planet" where the lower price was also picked more often because consumers felt more thought was put into the pricing.
I also suspect online catalogues "with show all items under $5" comes into play.
Sailor Candy Moderator
215169 cr points
Send Message: Send PM GB Post
28
Offline
Posted 4/19/16
op nuked
You must be logged in to post.