Wouldn’t it be awesome if there was a magic price point that would hypnotically persuade your customers to buy more of your products?
It turns out there is…
And you’ve probably already seen it in action.
All you’ve got to do is make sure that all your prices end with the number nine.
It’s that simple. (We’ll, nothing’s ever really that simple.)
I know that it might seem totally ridiculous, but according to a recent study in Quantitative Marketing and Economics, ending your prices in nine (i.e. $19, $99, etc.) can actually lead more customers to buy.
In fact, in one test, researchers found that the $39 price outsold the lower $34 price point by over 24%.
How cool is that?
Higher prices can actually lead to a higher conversion rate.
The study did indicate however, that sale prices (i.e., was $100, now reduced to $80) do convert sales more effectively that the number 9.
The Magic Pricing Formula
There’s still one pricing strategy though that was able to outperform the sale price.
Can you guess what it is?
Combining the findings about the number nine with a sale price is the ultimate performer. So, between these two pricing options…
A) Original price $100, now on sale for $74
B) Original price $100, now on sale for $79
… Option B resulted in the highest sales conversions even though it was the higher price.
This might just be the holy grail of selling… higher prices and higher sales volume.
Here’s what I want you to do next…
Now that you’ve read about this powerful pricing strategy, I want you to go test it on your website.
(Remember… Don’t just assume that because these results were proven in the study that they will necessarily hold true across all industries and all websites. Run an A/B test and see how using a 9 in your prices effects your conversion rates.)
Do you know somebody who is selling products online (or even offline) that might benefit from this pricing strategy? Share the link to this article with them and help them start making more money.
And if you want to receive more practical marketing tips like this one, then don’t forget to sign up for my email updates below.
Awesome post, Aaron. I like the way you took the data and broke it down into action items, presented simply and enthusiastically. I’ll be keeping my eye on this blog!
Thanks Ben!
Looks like you’re already one step ahead of the game using 9s in all your pricing at Managed For Mimi.
This is an amazing marketing phenomenon. I am definitely going to try this one out. The only thing that is missing from your post is an explanation of why this works? Why would consumers be more likely to make a purchase if the price contains the number 9? Do you have any idea? Maybe one of the other readers can offer an explanation?
In any case, thanks for the great posts. I can’t wait to read the next one!
I think the 9 fakes us out subconsciously – when we see an item for $39 we think “Wow – I’m getting a $40 item for a price in the $30 range!” While with $34 we just think “I’m getting an item for $34.” It reminds me of those optical illusions where you see a glass or two faces, the witch or the young maiden – we see $99 and our minds jump back and forth between $90 and $100.
Hi Ellen, you might be right. Isn’t it amazing that even as educated people our minds still manage to trick us with these types of things. I guess it’s probably just a situation where we want to by the item anyways so our brain allows us to be tricked into going ahead with the purchase.
Aaron,
Thank you for you post and for sending your update via linkedin. Dave, this is an amazing marketing phenomenon. Phsychology is not my field, but the answer lies in the way we think as people. A phenomenon is something that defies rational thinking, well, humans are not only rational thinkers or doers, but we also think and act based on emotion. Our emotional brain systems are so much more developed and “hard wired” than our rational brain systems and therefore a penny less acts on our emotions and causes us to buy more making us convincing our brains that we received a good discount. This pricing system certainly does not operate in the rational areas of the brain. I think that I will try it together with price reductions.
thanks!
Hi Jamie,
Thanks for visiting the blog and commenting. Definitely let me know how this technique works for you and your business.