3 ms·
Why $X.87 ? I've seen $X.99 versus the $X but never $X.87
by winslow 9y ago
Why $X.87 ?
I've seen $X.99 versus the $X but never $X.87
- alexeldeib 9y agoHazard a guess: where .99 lowers the leading digit and feels "cheap", .87 feels more precise than a round number like X.00. Even if it's entirely arbitrary, it carries weight of apparent calculation behind it.
- ttul 9y agoDoes anyone have any science to hack this up?
- tmnvix 9y ago> hack this up I had to chuckle a bit. So you want some science to discredit the idea?
- ehnto 9y agoI will try and find the book, but their is research behind arbitrary pricing. Hardware stores for example often use exact sounding pricing because the consumer is making a rational purchase rather than an emotional one, and a price that seems calculated based on real value aligns well. The 478 dollar drill must cost that much because of the precise materials used to build it. Compared to the 199 dollar one which is obviously made of cheap materials and marked up.
- BartBoch 9y agoI would never go for .87 as it is confusing number and forces the user to go out of the comfort zone. I would always suggest going after 9 or 7 at the end, and the full dollar. I have quite an experience in pricing, and prices ending with "7" helped to convert more on the fence users (and cheap ones too, so if you offer live support, I would avoid that), while with "9" I would get less troubling customers, but I would see a slight dent in revenue numbers (out of every 50 customers buying at price ending with "7" I would probably see around 3 less with prices ending with "9"). The sample for this is few thousands of customers, that I had to cater for personally.
- ryanbertrand 9y agoSimilar to Walmart pricing. I rarely see it is SaaS though.