People think an item is way cheaper when priced at $9.99 rather than $10.
Price tags ending with .99 rule the stores. They are prevalent wherever you shift your view. Ever wonder why retailers do that? And you can expect certain category of products and services with price ending in 0, like $10 or $400. Even the emission of the comma in 1200 is a result of pricing studies.
9 has a pricing power. Any item that ends with .99 speaks out “great value”, “sale” and “discount”. Buyers think that it’s the lowest price it could ever have.
People round $9.99 as $9 instead of $10. Researchers call this the left-digit effect. Everybody that has a brain is susceptible to think that way because that’s just how human minds work. And we are more led to round prices on the left digit because we see .99 innumerable times.
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