Pricing psychology: How to set prices to increase sales? | Pixiolabs

Getting customers to make a purchase is the ultimate goal of marketing. How to set prices to increase sales?

Oftentimes new online merchants overfocus on such things such as the size of the font used to show the price. Research into consumer psychology offers some interesting insights into the most effective way to display prices. Get your price display right and you improve your chances of customers pressing the “buy now” button.

The main points are as follows:

  • Should prices end in an odd numbered digit?
  • For customers, the first digit matters more than the last one
  • How prices “sound” influences purchases

Should prices end with an odd number?

Everywhere you look online you can buy things for $97, $147 or $27. It seems as though we have forgotten that prices can end with a digit other than 7. Some merchants end their prices in a 9, suggesting that 9.99 “feels” cheaper than 10.

Logically we know of course that 9.99 is pretty much as near 10 as you can get. Brains don’t always work logic logically, though. The fact is the human mind “rounds up” even numbers and “rounds down” odd ones.

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Pricing psychology: How to set prices to increase sales? – Pixiolabs.