Sam Traveler - Did you know that around 60% of all retail prices end with a 9 digit? No one is sure about why the digit 9 in specific, but most marketers and economists know that ending a price with it tends to increase sales.
For those who want empirical evidence, back in 2003 some MIT folks did a quite interesting study around the subject. The basically used a mail-order company that sells women’s clothing, and the priced the same pieces at three different levels: $34, $39 and $44. Care to guess the results?
The $39 price tag outsold the other, by a factor of 15% up to 30% in some cases. If you didn’t get the insight yet, let me re-phrase it: the same product sold more units with a price of $39 then with a price of $34!
The same results were found when they used $44, $49 and $54 price levels, as well as $54, $59 and $54. In other words, the price tag ending with a 9 virtually always outperformed the other price tags, were they higher or smaller.
Here’s the conclusion from the paper:
We have presented three ?eld experiments demonstrating that $9 price endings increase demand but that the effect is context dependent. The effect is stronger for new items that customers have seen less frequently in the past.
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