The 99 Cents Pricing Study

Bottom line: If you have two products you're looking to sell, one higher priced than the other -- price the one that you most want to sell with amount -.99. For instance 2 pens, one $2 and the other $3. If you want to move the $2 pen price it $1.99 and keep the $3 pen at $3.00.

If you want to sell more of the higher priced pen, tag it at $2.99 and the lower priced one at $2.00. If you use .99 cents on both, for instance $1.99 and $2.99, sales will stay flat.

This study was reported on by MarketingProfs who got the information from a study done by The Journal of Consumer Research.

Now, go experiment and let me (and your boss) know about your success.


Sugar Looking Sweet

Blog network Sugar benefits from mainstream online advertising crisis. New York Times, 9/14/09.