Ever since I’ve been a little kid, I always knew that the $9.99 meant $10. My seven year old always pipes up when a commercial comes on offering something for $19.99. He says “Come on people, it’s $20!!”. He probably gets that from me, but oh well, it’s true.
So I’m just wondering if anyone thinks there is some advantage to advertising by the $.99 and not the nearest dollar. It actually bugs me a little because I just don’t get it. Are people really persuaded more by an ad that is $199 versus $200 or $5.95 versus $6.00?? Is there some real evidence that this actually makes a difference?? It almost seems insulting, haha.
I know this is but a tidbit in the mix of marketing and is probably pretty unimportant but thought I’d ask why you think this is better. Yeah, it’s a slow day, at home watching the kids, weird question I know, … think of it as just shooting the sh&%. And please don’t take this as some attack on your pricing, … you’re the veterans, … you’re the professionals that have good working business plans, just asking why. Apparently it is working for some of you, but I wonder if a flat price of say $200 would work just as well.
It’s funny but still works. I have recently started giving estimates this way. If the job is $380 I bid it at $379 etc. I tell myself it’s only a dollar but there’s something about seeing $599 and not $600. Weird but if it is being used in every ad you see there must be a reason.
It’s true. It must just be some subconscious thing going on. On the surface we all know its $10 bucks but it just seems better the other way. Anymore it seems almost less “professional”…well thats not the word I’m looking for but maybe less “official” or something if it says $10 instead of $9.99. Saying $10 is kinda like saying we’re not main stream- we just want every penny we can get…or something i don’t know really.
Whats interesting is that restaurants are the exact opposites. Tacos and cheeseburgers are .99¢ or $2.99, but when you get up to the fancier restaurants, in order to set themselves away from the lowly .99¢ joints- they list items on their menus as “beef wellington 23” or whatever.
We have recently implemented this idea also. Another note on pricing - if someone is willing to pay $88, there willing to pay $99. If they would pay $132, they will pay $149…etc…etc…
I had a guy that was doing some quoting for me ahile back, and he would sign up jobs for like $87 - and I was like WTF??? Tell the HO you’ve got a great $99 special that they qualify for…they’ll sign those checks all day long.
Well, if you go to McDonalds, Burger King, and Arby’s you see the $1.00 menu. Taco Bell now has this $2.00 deal (although they do have a 79,89,99 cent menu). Little Caesars sells pizzas around here for $5.00. Pizza Hut offers any pizza for $10. But Wendy’s does the 99 cent menu. And the grocery store sells beer for 10.99 or 8.99. So go and try to figure that out. It is pretty interesting although I don’t know if it really makes a bit of difference.
I have a summer deal going right now. It’s 5.95 per window for glass in and out only. 8.95 for glass, frames, sills per window. I definitely think it makes a difference.
Just a question, when making up flyers are there any studies with say $25.00 off vs say a $25.99 off or a $29.99 off of a service and landing more jobs with the .99 then .00?
