99 cents vs $1, $1.99 vs $2, $2.99 vs $3, etc

The article starts off by explaining that most stores would rather sell an item at 99 cents instead of a dollar because it is more appealing to the consumer if an item is 99 cents. According to the author this works with larger priced items as well. They found that consumers are more willing to pay for a $1.99 priced item instead of a 2 dollar priced item. The article then states that it does depend on the item that is being sold. There is a chart that breaks down price points based on people who bought the items compared to those who just viewed them.

Key Takeaways:

• The conversion rates in the chart are almost doubled for the $.99 products.
• Selling at whole numbers must not be as eye catching to consumers as the inclusion of “cents” into the price.
• The US does not value cents as much as they value whole dollars. The association of cents with coins makes the product seem cheaper.

“One trick that most retailers have learned is that for many products it is much better to sell it at 99 cents rather than $1,”

Read more: https://www.possolutions.com.au/blog/99-cents-vs-1-1-99-vs-2-2-99-vs-3-etc