How companies price their products.

18 Comments

  1. wunhand

    The penny makes all the difference 😉

  2. Interloper_Mango

    Man I hate collecting pennies.

  3. Iroiroanswer

    Psychological something something. Shit I learned in business school.

  4. Stoff3r

    That’ll get us at the top of the price charts.

  5. knowledgebass

    Is it just me or $19.99 feels more expensive because it has more numbers and all those 9’s. 🤣

  6. Odd-Opening-8170

    My brain automatically rounds up with prices like that. The average person is a clueless fucking goldfish though.

  7. Nightey3s-

    This sucks when the product is $59.99 and free shipping requires $60

  8. Gynthaeres

    Psychological reasons.

    Two items, one priced $19.99 and one priced $20.99 feel like they’re $10 apart, at a glance and first thought to people, despite the difference really only being a dollar.

    This is true for $9.99, $1.99, and so on. We only look at the dollar, not the cents so much. $1 to $2 is a huge jump, but $1 to $1.99 doesn’t FEEL like a jump to the average consumer.

    And you can kinda see this in practice on yourself too. You know that gas goes to the tenth of a cent? So if you see gas for $3.75, you say “Gas is $3.75.” In reality it’s $3.76″, more or less, because the actual gas price is $3.759″.

  9. DatabaseHonest

    It’s called “psychological pricing”, I’ve also seen a term “marketing rounding”, while I worked with retail software as a developer. Everyone knows how it works, but people still fall for it.

  10. HardStroke

    Its simple psychology.
    Its also a good way to make you spend more, especially on sites that offer free shipping after a ROUND amount of money.
    Free shipping when spending $60 means you won’t be able to buy 3 stuff for $19.99 each and be eligible for free shipping. Gotta spend more.
    Or do what Dbrand does and just give them the extra money for free just to get free shipping.
    Its also why you often see a product that actually costs $500 being “discounted” from a fake $700 price that’s crossed out next to a big “DISCOUNT!!!” just to be listed for $500.
    Also the reason why you always see “Only 3 left!!”
    Fake discounts, .99 prices, lying about low stock.
    These things WILL push people into buying stuff.

  11. Here in Ireland retailers still price things at 9.99 even though the price you pay is always rounded up to a multiple of 5c. Monkey brain still goes for the 9.99 one even though it will still cost you €20.

  12. FellafromPrague

    Our bad guys we made this shit.

  13. Zandonus

    Even if it’s $19.50, I’ll still say $20 out loud. You can’t fool me. It’s $20. I refuse to be fooled. I refuse to fool everyone else.

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