Monday, January 10, 2005

why are things always priced $9.99 or $495 or $249?

it's because consumers subconsciously think you are getting a discount from a perceived or inferred regular price. for instance, $95 means you think you are getting a $5 discount - and because you are getting a good deal, you are more likely to purchase. at $105, you think you are paying for a $5 premium, so you are less likely to purchase. marketing is a lot cooler than you think.

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