Mr.Conley
Senior Member
It's kind of interesting. Apparently, the reason most corporations price items at $0.99 or $0.95 is that products at these markings tend to sell faster than products at a round dollar. Basically, if you take any item, say a magazine, and sell it at $9.99 you will end up selling more copies of that magazine then if you set the price at $10. So while sure you do make $0.01 less on every purchase, you'll more then make up the difference in the increased volume sold. It's a psychological mechanism. When you see an item priced at $99.99 you technically know that it's really $100, but people are very sensitive to images, and the reaction you have to an item will be much more positive at $99.99 than at $100 because at $99.99 the item looks cheaper without that extra 1 tacked on the end, even though the actual price difference is practically nonexistent. Corporations are all about making you feel good about their product, and that one cent off can, will, and does make the price shock much more negligible, which makes you much more open to buying their product. You get the same reaction at $0.95, but it isn't quite as stong as at $0.99; however, with $0.99 out of commission, and if a company has to choice, most are going to round down to $0.95 and bank on selling more of the product to make the difference. It's all about messing with your mind.Semper Fi said:
