Ever wondered…
Why some prices end in 9 while others stick with 0?
How should I end my prices?
And does it really make a difference, or is it just marketing fluff?
In this episode of Live with The Pricing Lady, join me as we dive into the psychology of charm pricing and explore whether ending your prices in 9s, 0s, or other options is the right strategy for your business. It’s important to remember than ending your prices in a certain can either work for or against you, that’s why you’ll want to listen in and learn.
You’ll how this small pricing tweak (how you end your prices) can influence your customers’ buying decisions, which types of businesses benefit most from charm pricing, and when should you steer clear to protect your brand’s value. Whether you’re in retail, e-commerce, or service-based industries, this episode will help you be more conscious about what you choose to do.
Don’t just listen—join the conversation!
Should you end your prices this way? Share your thoughts on social media or reach out to me directly. Your insights are invaluable, and I’d love to hear your take. Let’s figure out together if charm pricing is the missing piece of your pricing strategy puzzle.
What to Listen out for:
- 00:16 Understanding Charm Pricing
- 01:02 Psychological Effects of Charm Pricing
- 03:09 Businesses That Benefit from Charm Pricing
- 07:19 When to Avoid Charm Pricing
- 09:00 Conclusion and Additional Resources
Favorite quotes from this episode
“Charm pricing is used primarily in retail. Another area it can be effective is on purchases that are triggered by a psychological impulse to buy. ” Janene
“Grocery stores often use charm pricing – every day items. You see prices, especially at shops that want to convey economy, with endings (like .99 or .95) that encourage regular purchases and try to build customer loyalty. They’re utilizing charm pricing.”
“Also in e-commerce, when you’re doing discounts and promotions, highlighting discounts with prices that end in 99 or 95 can really help emphasize that savings.”
“In some countries where they don’t have 1 cent, like Switzerland, .95 can be used in a similar capacity to convey economy.”
Episode Links
The Psychology of a Pricing Page: https://thepricinglady.com/psychology-of-pricing-page-course
Learn how to do customer insight interviews in The Customer Compass with Janene. Starting soon.
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Get started improving your business. Beyond this pricing podcast there’s more for you to explore. Sometimes it’s difficult to know where to begin. I suggest you Download the the self assessment Pricing Scorecard to get a view of what’s working and not in your business. Also if you’ve ever wondered “What’s a fair price?” then check out my on-demand webinar “Getting to A Fair Price“. Two great places to get started with pricing in your business today.
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Episode Summary
In today’s post, we’ll be diving into the fascinating world of pricing psychology – answering the question “How should I end my prices and does it matter?” You’ve probably seen it everywhere—from grocery stores to online marketplaces—but is it the right strategy for your business? Keep reading to discover the psychological principles behind charm pricing, where it works best, and when to avoid it.
Understanding Charm Pricing
Charm pricing is more than just ending your prices in nines, sevens, or fives. It’s a strategic approach rooted in pricing psychology that can significantly influence consumer behavior. If you’ve ever thought to yourself “How should I end my prices?” you’re not alone. Many business owners find themselves asking that. As consumers we are bombarded with charm pricing tactics all over – but that doesn’t make it right for all businesses.
The Left Digit Effect
One of the foundational principles of charm pricing is the left digit effect. This phenomenon occurs because consumers tend to focus on the leftmost digit of a price. For example, $9.99 is perceived as significantly less than $10, even though the difference is only one cent. This perception makes $9.99 feel like a better deal, activating subconscious decision-making processes. When you think about how you want to end your prices does charm pricing give the right message?
Consumer Conditioning
Over time, consumers have been conditioned to associate prices ending in 99 or 95 with bargains and deals. This is especially noticeable in large discount shops or online discount stores, where these prices are prevalent. This habitual behavior makes consumers perceive these prices as standard and fair.
Perceived Precision and Trustworthiness
Another aspect of charm pricing is perceived precision. Prices like $19.95 can give the impression that a price is carefully calculated and precise, making them seem more fair and trustworthy. In contrast, rounded prices like $20 may appear more arbitrary and less thought-out.
Conclusion – How should I end my prices?
Charm pricing can be a powerful tool for many businesses, particularly those in retail and e-commerce. However, it’s less effective for high-end, luxury, and niche markets where quality and exclusivity are paramount. Ultimately, the numbers you choose for your pricing strategy not only reflect the amount of money you will earn but also communicate something to your customers. Align your pricing with your overall business and marketing strategies to ensure it benefits your unique situation.
Extra Resource
If you’re interested in delving deeper into pricing psychology, check out my self-paced course, “The Psychology of a Pricing Page.” For a small investment, you can gain lifetime access and learn how to optimize your pricing page and written offers.Use the link above for more details and start mastering the art of pricing today!
It’s important to know that pricing doesn’t have to be scary. Of course when you don’t know how to do something then it’s harder to dampen or be capable of overcoming pricing fear if you feel it. I highlighted the importance of experimenting and being confident in your pricing decisions. Stacey added that having a structured approach and being prepared to evolve are keys to sustained business success.
Thank you for tuning in to Live With The Pricing Lady. If you found this blog post insightful, feel free to share it with your network. Stay tuned for more pricing insights and remember, pricing is not just a number—it’s a reflection of your business’s journey. Enjoy pricing!
