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australianinvestor
Bronze Contributor
Good point - sorry, I didn't want to make a big deal out of it.
No big deal, it was a good point and I am glad you raised it!
I'm selling a few shirts over on my website and while the demand is nowhere near large enough for me to feel comfortable fiddling with the prices to see what happens, I'm very concerned with how I set those prices. My older items I've got set at round dollar amounts. My newer items I have set at .99 amounts.
Psychologically you've brought up an incredibly interesting topic!!
Check out some marketing books or stuff on consumer decision making. Price is often used as a substitute measurement for other things, like quality, desirability, etc. If you were to raise your prices, you might make more money per item AND sell more of them. This is often because of consumers' perceptions. "If it's cheap, it can't be as good as the expensive one". I do that as well, sometimes.