Shop Talk: Practical answers for tough business questions
Question: When pricing items that do not come pre-priced, are there certain prices to avoid and others that are proven to sell well?
Answer: As a general rule, we avoid odd numbers and usually price at an even number, or an even number plus $.95 or $.99, such as $18.95. I’m not sure there is any proven science to answer your question, but it is true that, psychologically, $19.95 sounds less than $20, and items sell better priced at $12 or $14 than at $13.
First published in Vol. 25 No. 1 of Retailing Insight. © 2011 Continuity Publishing Inc. All rights reserved.