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It's the three strategies of pricing:
But it IS how we see prices. If there weren't science behind it, they wouldn't be doing it.
A lot of marketing strategies are pseudoscience. Just like a lot police investigation practices or body language assumptions.
JC Penny kinda showed that no. It isn’t pseudocience
What's the story about JC Penny?
The CEO decided that clients were smart intelligent people and treated people as adults. Aka, no discounts, no 99 pricing, it just costs what it costs, as low as we can make it, plus our margin.
JC Penny was already not too well, this helped sink them
It was less about the .99 pricing and more about "Sale" pricing and 'coupons'. Retailers will put a pair of pants on "Sale" for 50% off 51 weeks out of the year and people think they're getting a great deal whereas when it's not half off, they just don't buy.
Poor guy. Tried to do some good in the world and paid the price for it. Nobody ever went broke overestimating the stupidity of the average person.
Some marketing strategies are pseudoscience, but this one isn't.
$20 and $10 shipping: 😡
$30 and free shipping: 😄
It is kind of a dick move when companies overcharge for shipping. I only charge calculated shipping on large or heavy items because those are the ones that vary a lot and I don't want someone in zone 8 (like Southern California or even someone in HI buying it and shipping costing more than they paid. If it's under 1 lb then I just give free shipping and bake it into the price.
Part of it is that there's less hidden costs. I like it when it's just "the total is $30" instead of "there's $8 shipping and a $2 service fee and then $4 in taxes and..."
I've also seen some online stores lure in a customer with a really cheap initial price and then on the last page just slam them with insane shipping and handling fees hoping that the customer either doesn't notice or feels too invested at this point to cancel their purchase.
But yes, part of it is also people are stupid when they see the word "free" as if the store wouldn't move the cost somewhere else.
My husband is awful in that regard. He sees the first digit only and then rounds it down. "It's just 30€" - it's 39,99€. "It's like 200€" - it's 289,90€, "5000€" - 5999€. I love him to pieces but I don't trust any of his numbers.
I love him to pieces
How many? About 200?
Best I can do is 199
A whole 100 pieces? What a deal!
From my experience working in retail I've seen people say out loud something like "oh, it's only 4 dollars!" When the sticker says $4.99. This shit apparently works on a lot of people for some reason.
This is my neighbor all the time.
Like dude, round up!
Honestly, however much I want to pretend to be better than that, I think it does work on me. Obviously not on a conscious level, I know how numbers work, but some part of my monkey brain sees the 1 instead of the 2 and therefore concludes that it must be way cheaper. It's a feeling that no amount of facts is going to disable. And in the end many purchasing decisions aren't based on a full analysis but on feelings.
Most people are idiots most of the time.
Some people are idiots some of the time.
No one is never an idiot.
Can confirm. I'm idiot most of the time
This is locally grown artisanal bullshit, it's actually $300, please tip.
It does work believe it or not. It is something that plays to your subconscious. You will favor the slightly cheaper option even if you aren't aware of it.
These dumbasses thinks this works on us smart people. Anyway, gotta go fight some people on black friday for shit i don't even need nor afford
Which just so happens to have been the same price all month.
The amount of times I've watched Youtubers say something like "35 dollars" while showing an image that shows the price as $35.96 happens too often for me to side with OP lol, sorry.
I generally round up to nearest bigger number or close to that. $19.99 is $20. $23.99 would probably be $25. $180 would just be $200.
No real rhyme or reason, just the bigger the number the more I fudge the “real” price upwards thanks to sales tax and a “can I really afford this?” factor.
I'm not sure it works on me. Not because I'm some super human resistant to advertising (I'm not) but because I'm so bad at math that when they start asking me about anything involving small change I tune out and overestimate by 50% rounded into nice whole numbers.
"This is 19.99"
"Okay so it's basically 30$."
It gives me nice surprises sometimes when I get my receipt.
People suck at math and this is how they confuse people into not caring what the actual price becomes when they have to add multiple items together.
What’s 19.99 + 21.75 + 4.99 + 3.99 + 1.99? Can the common person do that math in their head while grocery shopping? What about adding the tax to that total? Not a chance.
Most people probably don’t even know what the sales tax is in their own state.
Honestly I just want tax included on the price tag.
That is honestly insane.
In NZ the sticker price is what you pay, if the price on the sticker doesn't include tax, it is false advertising and you pay what is on the sticker.
It is entirely up to the retailer to ensure that the price is correct. The only exception to this, is if the price is obviously wrong e.g. $5.00 rather than $500.
I just wished it was mandated to list prices to include all the taxes along with it. Whether it says $19.99 or $20 still isn't the actual price.
Recently had the worst of this. Was craving chocolate milk, find a nice size bottle of it for $3. Get to register. $6.63 total price because the glass bottle had over a $3 deposit.
I always round up the price when I see $X.99 but my grandmother always rounds it down and it pisses me off
They're trying to fool you! Don't be a sheep!!!
It never works on me. I was taught at a very early age that pricing down by one cent of one dollar is a psychological trick and that I should round up to the nearest whole number.
This is one of those things that makes me feel the slightest bit more agitated and cynical towards people and society. We all know it's manipulative, and that should be enough reason not to do it. So why does everyone who runs a business do it? Like yeah it does work, but is it really worth subtly eroding your own customer's trust in you? There's an invisible cost of goodwill here.
But you get a penny back, isn't that great?
They may list it as $19.99 but I'm always going to call it twenty bucks and eleven cents.