In considering changing to ending my handmades products prices in 9-something, I recently did research about the perceived value of this marketing practice. I
have resisted in the past, preferring to list prices as I considered them to be, ending
in .00 mostly, and sometimes in .45, .65 or .25. I have always felt that this is more honest. The psychological info about what helps lead people to buy, however, is sound. It involves more about
what people are comfortable with upon first observation of a price tag, rather than deceiving shoppers as I
had previously thought.
I've never felt that it was fair to lead shoppers to believe that a
product is $10 when it’s actually $11, by pricing it at $10.99. I've always considered it to be a trick to fool the eye. It is interesting, though, to
learn the psychological reasons behind what people think when observing $10.99 versus $11.00. Here’s one
article that I read at
FastCompany.com titled
The Psychology Behind The Sweet Spots Of Pricing
Even as a crafter and artist involved in eCommerce, I am still protective of consumers. When retailers use deceitful tactics to wring a dollar from my purse, I don't like it. It has occasionally resulted in protest and permanent boycotting from me. While I think that the psychology of buying can be abused, there is a lot to be said for helping the customer to feel comfortable, rather than repelling them. I'm going to work on my prices. Am I caving in? I could perceive it that way, if I want to be negative. I choose to perceive it as putting my customers first, rather than being stubborn.
I do understand that the info
that I've shared above won't make a difference to everyone who reads it, but it
surely changed my stubborn stance. I'm always seeking ways to encourage
visitors to spend time in my shops, which can lead to more sales. It
also shows compassion for potential customers, because they don't understand that they
are being repelled and possibly missing out on just what they were seeking.
Understanding psychological behavior about
many things is important to me, and I learned from the psychological
studies of prices that some people can be unconsciously turned away by
price endings, when otherwise they might have found something that they
liked.
I LOVE sticking to my guns about anything and everything,
but changing my habits about pricing my handmades is a small price to
pay for the possibility of increased sales.
As an aside: The studies show too that there is also value in pricing certain types of products with prices ending in .00. Those who are crafters
and artists can effectively use both methods.
Other interesting articles about the psychology of pricing:
Wikipedia.com:
Psychological Pricing
PragmaticPricing.com:
99 vs 97 - Can You Help?
Blog.kissmetrics.com:
5 Psychological Studies on Pricing That You Absolutely MUST Read
