Conduct This Price Experiment..

In his book Priceless, William Poundstone finds on average, prices that end in “9” increase sales by a whopping 24% versus their nearby rounded prices. (Think $99 vs $100). What sounds better to you?

For example, an experiment by MIT and the University of Chicago tested prices at $34, $39 and $44 and found the $39 price sold best – better even than the $34 price.

The one thing that can beat a “9” according to these various studies is a sale price, in which the regular price is shown along with the sale price. However, everything else being equal, the “9” still wins out with a competing rounded price.

So here’s your assignment for the day.. test different price points on your products. If you are currently selling something for a price that ends in “0,” try changing the price so that it ends in “9.”

And don’t be afraid to increase your price and see how that goes, too. You may find there is more profit to be had in selling your product for $29 than $19, even if sales slightly decrease.

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