Does odd pricing turn you off for online SaaS products (e.g., $29 vs $30)?
Does your opinion change if the brand positioning is about honesty/transparency or 'being different'.
I tried to get my wife to do odd pricing for her Etsy store but she informed me that 'normal' pricing worked better. It makes sense given the community of Etsy-- they want to do business with people, not marketers.
All that to say... It depends on your customers.
Thanks for the great thoughts all. Keep 'em coming...
Tyler: have your wife test her theory. the only way to know. I'd be curious if etsy matters (I doubt it).
Also the best pricing strategy has 3 tiers of pricing to increase sales and net profit.
It doesn't necessarily turn me off as a consumer, though I see through the visual pricing trick in those cases. $1999 is still 2 grand to me.
For pricing my products and services, it depends. I like keeping it simple for me, first and foremost, so my packages are more like $150/hr, $1500, $5000 in order to simplify the running of my business for me.
There are a few instances in another business I have where we price a webinar at $99 because that's pretty standard and easy.
What it comes down to, though, is whether or not you have something of value to offer. If you do, customers will be happy to give you $29 or $30 or $499 or $500. Because you're providing value to them. If you're not, pricing can't help you.
Good question. Somewhere in my limbic brain going back to my early days in traditional direct mail, I read about a pricing test over time, and prices ending in 8 won. While I can don't even have a clue where I read this, I have followed it most of my business life, and it has worked. I subsequently learned that the number 8 in Chinese numerology is considered "auspicious." Be that as it may, I think much more important than the pricing number, is what is the value perception of what you are trying to sell. In selling a can of corn, 99 cents may sell many more cans that $1.01 - but in other areas, value will drive sales pricing is important but whether the price ends in a 1,2,3,6,8,0,,,probably doesn't matter if the value is there.
The research has found that customers commonly associate prices ending in zeros as conveying a quality, premium message.
Prices ending in 9 are commonly associated with discounted, on sale, cheap.
Most customers know that $29 = $30.
When the time comes to increase a $29 price point, there is typically a drop in sales (albeit temporary, unless you've hit the customers price ceiling). You are less likely to experience that when increasing a $30 price point
Happy to chat further on this if you're interested
I believe it can be a strategic move if you look a bit closely. Odd pricing is believed to have a considerable impact on a customer’s mind. Odd pricing is also believed to put across the impression that goods are marked at the lowest possible price because it is a belief that even prices is an outcome of the retailer rounding up the price to a whole number. Odd prices for the same reason even give an impression of honesty of a retailer. They even sketch their advertising plans highlighting the aspects of an odd price and emphasising on the money saving aspect to catch a customer’s frenzy.
You can read more here: https://www.indianretailer.com/products/offers-and-products/Odd-pricing-is-an-effective-strategy.p78/
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath