This can be yours for 19.95 19.99 at DVinfo.net

Steven Davis · May 9th, 2008, 08:55 AM

I'm curious, has anyone every done research or does anyone have an opinion about pricing in terms of digits. I was going to adjust my pricing and right now, my packages are solid even numbers. I know there is a psychology when it comes to pricing, and by all means, I don't want to come across as a infomercial.

Any opinions?

Josh Chesarek · May 9th, 2008, 09:08 AM

This might give you an idea on the whole 19.95 thing.

http://www.sciam.com/article.cfm?id=...995&ec=su_1995

Mike Cavanaugh · May 9th, 2008, 09:11 AM

I think the issue with the "$19.99" type pricing applies more to small per unit cost items like a DVD. This particularly applies in the area of an "impulse purchase" , an item a customer has not really been shopping for, sees and says "What the heck, I get it" In larger identical items, the customer is shopping for the entire package. When you buy a large screen plasma TV you are less swayed by minor price differences even though the model numbers are identical in three different stores - you also look at delivery times & costs, warranty, store's return policy, reputation and helpfulness of the staff. And that is for an identical TV.

For a production service package, you rarely have identical items to compare to a competitor. If you are talking about pricing for production services, the quality of your project and scope of what is provided, reputation, past performance and interpersonal skills SHOULD determine your price point and if your potential customers don't contract with you because your wedding package was $6,000 instead of the competitors $5,999, you probably saved yourself a lot a hassle!

Andrew Kufahl · May 9th, 2008, 09:15 AM

For the retail work I currently do, $X.95 is the most common retail price used. But when items are being clearanced, the industry trend (at least in the area of retail I work in) is to price the items at $X.97. However, these numbers aren't necessarily chosen because of consumer psychology (with what I do), they are chosen more because they are the industry trends/standards. But, I would assume that ultimately they are the trends/standards because of the psychology behind them.

I probably didn't help too much, but this is my feedback from real-world experience.

Hope this does help a little,
Andrew

Steven Davis · May 9th, 2008, 09:32 AM

I will continue to think about the price change. I didn't want to add 55dollars to each package, and then have the potential client ask, what's the 55 dollars for? I don't know, maybe I'm thinking too much. But thanks again.

Steven Davis · May 9th, 2008, 09:45 AM

Quote:

Originally Posted by Josh Chesarek

This might give you an idea on the whole 19.95 thing.

http://www.sciam.com/article.cfm?id=...995&ec=su_1995

Very interesting link Josh. Thanks.

Mike Barber · May 9th, 2008, 10:25 AM

I understand that some marketing people have some psychological theory behind the .99 or .95 pricing scheme, but when I look at the price of something, I automatically round up to the dollar anyway. In fact, I find it just a little bit insulting that they think they are fooling me with that kind of thing.

One interesting thing to consider: when you go out to eat, look at how lower scale fact food or family chain restaurants price, and how more upscale quality places price. Low scale prices with the .95 scheme; upper scale restaurants tend more often than not to price to the dollar.

FWIW

May 9th, 2008, 08:55 AM	#1
Steven Davis Inner Circle Join Date: Jun 2004 Location: Richmond, VA Posts: 3,065	This can be yours for 19.95 19.99 I'm curious, has anyone every done research or does anyone have an opinion about pricing in terms of digits. I was going to adjust my pricing and right now, my packages are solid even numbers. I know there is a psychology when it comes to pricing, and by all means, I don't want to come across as a infomercial. Any opinions? __________________ What happens if I push the 'Red' button?

May 9th, 2008, 09:08 AM	#2
Josh Chesarek Major Player Join Date: Nov 2004 Location: Winter Park, FL Posts: 978	This might give you an idea on the whole 19.95 thing. http://www.sciam.com/article.cfm?id=...995&ec=su_1995 __________________ Simple Thought Productions - Life @ 30,000 Words per second

May 9th, 2008, 09:11 AM	#3
Mike Cavanaugh Major Player Join Date: Dec 2003 Location: Albany NY Posts: 311	I think the issue with the "$19.99" type pricing applies more to small per unit cost items like a DVD. This particularly applies in the area of an "impulse purchase" , an item a customer has not really been shopping for, sees and says "What the heck, I get it" In larger identical items, the customer is shopping for the entire package. When you buy a large screen plasma TV you are less swayed by minor price differences even though the model numbers are identical in three different stores - you also look at delivery times & costs, warranty, store's return policy, reputation and helpfulness of the staff. And that is for an identical TV. For a production service package, you rarely have identical items to compare to a competitor. If you are talking about pricing for production services, the quality of your project and scope of what is provided, reputation, past performance and interpersonal skills SHOULD determine your price point and if your potential customers don't contract with you because your wedding package was $6,000 instead of the competitors $5,999, you probably saved yourself a lot a hassle! __________________ Remember, nothing is foolproof to a sufficiently talented fool!

May 9th, 2008, 09:15 AM	#4
Andrew Kufahl Regular Crew Join Date: Apr 2008 Location: Menasha, WI Posts: 88	RE: This can be yours for 19.95 19.99 For the retail work I currently do, $X.95 is the most common retail price used. But when items are being clearanced, the industry trend (at least in the area of retail I work in) is to price the items at $X.97. However, these numbers aren't necessarily chosen because of consumer psychology (with what I do), they are chosen more because they are the industry trends/standards. But, I would assume that ultimately they are the trends/standards because of the psychology behind them. I probably didn't help too much, but this is my feedback from real-world experience. Hope this does help a little, Andrew

May 9th, 2008, 09:32 AM	#5
Steven Davis Inner Circle Join Date: Jun 2004 Location: Richmond, VA Posts: 3,065	Thanks I will continue to think about the price change. I didn't want to add 55dollars to each package, and then have the potential client ask, what's the 55 dollars for? I don't know, maybe I'm thinking too much. But thanks again. __________________ What happens if I push the 'Red' button?

May 9th, 2008, 10:25 AM	#7
Mike Barber Major Player Join Date: May 2006 Location: Toronto ON Canada Posts: 731	I understand that some marketing people have some psychological theory behind the .99 or .95 pricing scheme, but when I look at the price of something, I automatically round up to the dollar anyway. In fact, I find it just a little bit insulting that they think they are fooling me with that kind of thing. One interesting thing to consider: when you go out to eat, look at how lower scale fact food or family chain restaurants price, and how more upscale quality places price. Low scale prices with the .95 scheme; upper scale restaurants tend more often than not to price to the dollar. FWIW __________________ Mike Barber "I'm laughing to stop myself from screaming."