Thread: Pricing

The answer is in the first reply. $49.99 sounds much lower than $50.00. It's a mind thing.

I have a Vape shop that I go to for my Vape Juice. It's so cool that they charge 20.00 for a bottle and they don't add tax. So a bottle is 20 bucks and that's it! I asked them about it and their answer was "they will figure out the taxes at the end of the year and pay it, this way you don't have to deal with the tax or the change". I figure they are making enough money already on the product that they don't worry about the tax and will pay like normal at the end of the year. Plus, they don't have to deal with change. They have a tip jar on the counter and if someone comes in and want to pay with change, it just goes in the tip jar as there is plenty of dollar bills in that jar too.

You get nothing for nothing. Your vape shop figures the tax into the price and does the mind trick on you.

Like has been said there is a whole psych on pricing.

Okay that settles it for me. It's a mind trick.
Thank you gentlemen!

I have another question, do you guys think it's wrong to do such?
When selling, I just think real hard about how much I want to sell for relative to the least amount I'd accept.. and go from there.

Should I use such marketing ""strategy"" or just round to the dollar?

Originally Posted by DZEC

No pennies in Canada anymore. All prices round to the nearest 5¢

Only for cash purchases. Easy enough to profit . . . when total ends in a "3" or a "4", pay with plastic for exact payment. When it ends in a "1" or "2", pay cash.

Originally Posted by Orville

Only for cash purchases. Easy enough to profit . . . when total ends in a "3" or a "4", pay with plastic for exact payment. When it ends in a "1" or "2", pay cash.

https://www.bing.com/videos/search?q...7260&FORM=VIRE

Bob

Originally Posted by MikeT

Howdy gents,
I have a question about pricing.
Not "what" price, but why do sellers set prices that are 1 cent, or 5 cents or so below an even price..?
Example: $49.99 or $199.95 or $9.99... Etc.

Is there some sort of benefit they are receiving?
Is this some kind of Jedi mind trick to make me think that these are the droids I am looking for?

I feel like I'm missing something, maybe because I don't want to assume such tactics actually work..
I'm sorry if this is a dumb question, I'm a little blond sometimes.

They're also called, "smart" numbers.

For instance, an item that goes from .99 cents to .97 cents, triggers a inventory tag in the computer that categorizes the item as "clearance", any front line worker that see's .97 cents, knows it's now clearance.

In my time in retail I've seen dozens and dozen's of different configurations, .99 cents is one (they can be different for each retail industry or chain), .95 cents is another, I mentioned .97 cents. Then you'll see 87 cents, 56 cents, anytime you see a number like that it's usually "tagged" against an uploaded marketing program, with a start date and end date. Once the "sale" or "event" ends, the computer reverts to the old pricing model.

It's actually a pretty ingenious way of doing things, the front line people after about 6 months usually know all the numbers by heart, and can tell you what they mean.

A recent campaign of 99.88 seemed to lure them in...
Boy, did they get hammered!

Lotsa peeps are ignorant in life and rely on....Advertising!

As a 40+ year veteran of retail grocery, I know for a fact that 'Corporate' has figured out that 10 for $10's sells more product than 5 for $5's even though it's the exact same price.

Originally Posted by DZEC

No pennies in Canada anymore. All prices round to the nearest 5¢

That's too bad. But then, you all have $1 and $2 coins don't you? What a good idea.