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  • Need a marketing strategy forum other than adwords.

    Didn't think it quite fit in the forum below for adwords and PPC and such.
    What do you folks think about price listing strategies. I mean, the $XX.97 or $XX.99 or the $XX.00 strategies?
    Old school has it that the .99 isn't really the best pricing option anymore and that the even whole dollar amount pricing imparts a sense of enhanced value? :confused:
    While brick&mortar employ the .97 and .93 price break strategies...what works best for the ecommerce venue?

    We are currently using the .95

    we may experiement and make the move to .00

    any comments from the board? :)

  • #2
    We're currently using the .95 in our prices, which looks ok I guess. I've seen many examples of ecommerce sites using whole prices without any cents attached (e.g. "$35") especially at clothing retailers. I think it looks a lot cleaner and easier to understand... OK, I'm paying $35, I get that.

    Unfortunately, we deal in a lot of really cheap items with large quantities, so there's a big difference between $2.65 and $2.40. We're kind of stuck like that, but I'd say give whole prices a shot, though I wouldn't tack on the .00 personally.

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    • #3
      I'm not sure the cart will display whole dollar amounts. Not sure which way to go here. I guess a few cents either way matters little, but, I'm not sure how to gauge sucess or failure or "no-change" when evaluating any storewide changes. Sales are on the rise as we are a somewhat "fair weather" venue.....
      I guess it's hard to see which works better, really...:confused:

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      • #4
        I don't think you'll see a significant difference either way, it's more about ascetics than anything. As for solving the issue, couldn't you just use the "display text" option in the product and input $100 or whatever? I reckon that would work if you wanted to give it a go.

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        • #5
          Can't agree - I think it WILL make a difference.

          At the end of the day, why multi-billion companies still use .99 prices, SALES and other - hundred year old, marketing "truths"? Because it works. Period.

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          • #6
            I'm not sure which works better (as far as ecommerce)
            There are definately benefits one way or the other, but, I really can't find a way to evaluate the changes?
            There is a secret, somwhere, for how the brain works.
            This is different, though, than the gasoline pricing. That's held at 9/10 a cent for nearly 40 years! I remember when they actually changed the tenth of a cent! some would use 4/10ths some 7/10ths, etc. :p
            One time I went in after purchasing $21.309, gave them $21.31 and asked for my change! ;)

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            • #7
              Without any empirical evidence it is, in fact, impossible to say whether .99 works better than .00 or .95 or nothing at all, and it's certainly fallacious to say that just because the big retail boys do it that it must be true or best. Really, the e-commerce environment (and of course, the consumers therein) is so quick to evolve that you'll be hard pressed to adequately compare old businesses (even ones with an internet presences) to new ones.

              Additionally, I think it really depends on what you're selling. If I'm buying motor vehicle parts, I kind of expect the price to be some funky variation of dollars and cents. You'll see a whole slew of .94 .99 .97 and everything else on such a website. On the other hand, a retailer whose lifeblood depends solely on style such as an Abercrombie.com (who I think we can all agree is NOT hurting for cash) drops the cents entirely and tells you a t-shirt costs $37. Obviously, we can debate the horrendous profit margins of a $37 tee, but that's beside the point.

              Now that I think about it, a retailer like Abercrombie might actually benefit from customers perceiving their prices as slightly high, seeing as they're buying the brand, not the cotton shirt. Again, that's another speculative zone but I had the thought when viewing a "$100" cashmere sweater. Would a "$99.99" sweater sell more? Maybe, or maybe it'd sell LESS.

              Just some things to think about, it's a complex business world out there, eh?

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              • #8
                Must Read!

                If you're interested in the psychology that goes into many pricing and marketing strategies, you cannot pass up this book:

                http://www.predictablyirrational.com/

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