Why Many Companies Fix Rates as $-.99 at the end of the price of their Goods....
By Baluyadav
@Baluyadav (3643)
India
November 11, 2009 9:20pm CST
You might have observed that many offers from different companies for their goods or even offers in internet offers also.
Example-Tattoo kit-$99.99
Bata shoes-$39.99
Membership
in sites -$4.99
Is there any specific reason or to get prepare our minds that $5.00 is too much high than $4.99....
1 person likes this
6 responses
@Baluyadav (3643)
• India
15 Dec 09
hi,ck,you are true..one more thing..so called experts in selection of goods..best bargainers also nicely trapped by these marketing techniques..Have a nice day.
@KrauseHome (36445)
• United States
13 Nov 09
I am sure there are many of us who have always wondered the same thing, and it is a Good thing to wonder about. I would think maybe it is something to do with if they charge us $4.99 instead of $5 more people will want to buy it thinking it is a lot cheaper, even though it is only 1 cent lower than $5. But it would be interesting to see their reasoning behind this one for sure.
1 person likes this
@Baluyadav (3643)
• India
15 Dec 09
hi,krause,thank you for sharing your view on this discussion.Have a nice time.
@Baluyadav (3643)
• India
12 Nov 09
Hi,friend,thank you for sharing your views.I think this all because of retail purchaser's psychology and retail sellers play with it.Have a nice time.
@Fulltank (2882)
• Philippines
12 Nov 09
I can't explain it very well but have read and heard about it sometime ago. It has something to do about the buyers perception that (for example)$4.99 is still lower than $5.00. It is really a strategy in retailing business. Also, people wanted to prefer to have a "change" for their money even if it is only a few cents. Personally when it comes to bigger prices like $1,000.00 per piece compared to $999.90 per piece (with the same identical brands but sold in different seller), I would prefer to buy the lower one.
@Baluyadav (3643)
• India
12 Nov 09
Hi,that's the perfect answer,which i expect..Retails strategy of fixing these type of prices purely based on ordinary retail buyer mentality.This type of tricks i too used in when i was in marketing head for some pesticides manufacturing company.Along with that,i too added a small gift on every purchase of good..i will see that,the cost of free goods also build u in the original cost which we fixed for it.Nice and analytical response.Have a great time.
@nishantparmar (242)
• India
12 Nov 09
the answer of thise question is related to the marketing,because price endings have psychological effect. it is the marketing tactics used by various companies to make psychological effect of lower price.Pricing is a powerful marketing strategy in increasing purchases if priced right.price have more impact on consumers' behavior and perception. The consumers analyze and conclude that the product hasn’t reached the next bracket 100 or 90 or 80
1 person likes this
@Baluyadav (3643)
• India
13 Nov 09
Hi,nishant,you got the point rightly.Even though many knows that it is a simple marketing technique,still we buy as we not dominate our psychological feeling.Have a nice time.
@nishantparmar (242)
• India
12 Nov 09
the answer of thise question is related to the marketing,because price endings have psychological effect. it is the marketing tactics used by various companies to make psychological effect of lower price.Pricing is a powerful marketing strategy in increasing purchases if priced right.price have more impact on consumers' behavior and perception. The consumers analyze and conclude that the product hasn’t reached the next bracket 100 or 90 or 80
@Baluyadav (3643)
• India
15 Nov 09
Hi,you understood the marketing strategies well.I hope you become a good enterprenure.All the best and have a nice time.
