Psychological Pricing

[bj79995]

Hi guys, I am in the process of making a membership site. Im not sure how I should price it. I have been reading about psychological pricing and it seems that ending with the number 9 generates the most sales. However I could not decide whether to price it at $9, $9.99, or $11.99 per month? Any insight would be appreciated.

 

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[Tony Nguyen]

What does the company do? what value does it offer? that determines the price you are going to put, might as well do a limited time offer, REGULAR $11.99 down to $9,99 FOR A LIMITED TIME ONLY since you can't decide whenever price you want to put it all

- Tony Nguyen

 

[Prince Wasiq]

I would go with $9.99.

 

[bj79995]

Its a community thats pretty much all I can say to protect my idea, and princewasiq why would you go with 9.99?

 

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[Prince Wasiq]

Its a community thats pretty much all I can say to protect my idea, and princewasiq why would you go with 9.99?

cuz of my gut feeling..lol. and may be just because 11.99 is four digits (too much) and in the consumers mind $9.99 will naturaly be rounded to $9 (thats how psychological pricing works)

 

[bj79995]

Thanks I did not think about the four digit aspect, I just think 9.99 look cheap.

 

[jon.a]

Thanks I did not think about the four digit aspect, I just think 9.99 look cheap.

I like 9.77
7 is a happy number

 

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[pickeringmt]

You could go 11.99 / month
$9/ month for a year upfront

 

[MJ DeMarco]

I'm actually starting to like round numbers... $9 a month, $11/mo, etc. Carries with it a tone of simplicity.

 

[Magik]

I like 9.77
7 is a happy number

There is data that suggests that services and products (think sales funnel) sell better when they end with a 7. $47, $67, etc.

 

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[RogueInnovation]

3.14


I wish I had expertise, but each one has a slightly different effect on me
9 is initially cheaper for a monthly drain on my bank
11.99 seems more substantial but then as a monthly purchase I bite my nails
9.99 feels more like a store price so disconnects me a bit

What is the lifetime value of the customer, can you test on a group, to see if they will pay that price without dropping off on the back end.

Put each one on some paper and play with it

 

[bj79995]

Magik Ive been reading and it seems ending with 9 sales the best, can you direct me to the source of your data? And rogue you are right 11.99 does seem more substantial. MJ if its not too personal have you noticed any difference in sales when using a whole number versus something ending with a .99?

 

[The Duc]

Everyone here can give you their gut feeling and share their experiences, but the only way to know for sure is to test.

ALWAYS be testing.

 

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[Nadia]

There MUST be a 7 inside it. You need to determine what you are offering first and the 7 NEEDS to be there.

It is proven that 7 drives us to buy. I don't know why. Nor do I care. It has ALWAYS worked in my businesses and till today, works.

 

[bj79995]

There MUST be a 7 inside it. You need to determine what you are offering first and the 7 NEEDS to be there.

It is proven that 7 drives us to buy. I don't know why. Nor do I care. It has ALWAYS worked in my businesses and till today, works.

Do I need the 7 at the end? For example 9.97?

 

[randomnumber314]

Very little way to know in advance. A/b test different amounts, go with what works, kill what doesn't.

You should offer three tiers if you can e.g. 7.99 for 1 month, 9.99 for three months, 11.99 for 6 months...with the middle value being the best option for you.

 

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[Nadia]

Do I need the 7 at the end? For example 9.97?

Not necessarily. I can do 147.97 or 199.67, things like that. They ALWAYS work. You know how people drive themselves insane figuring out WHY things work ?

Don't.

Just run with what works

 

[Formless]

I don't know what it is about the 7s, but I've BOUGHT products like that before.

And I like round numbers too. It's more 'casual'. It's not so 'salesy'.

 

[Nadia]

I don't know what it is about the 7s, but I've BOUGHT products like that before.

And I like round numbers too. It's more 'casual'. It's not so 'salesy'.

It's weird. You never quite notice the 7's until you're like "oh...."

Yes. Round numbers are nice. We know salesy numbers when we see them.

 

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