You don’t have to be smart . . .

People within companies often argue about the silliest of things.

How likely do you think it is that one will come up with a better answer to a question that every other company has already answered?

It’s great to have the freedom of a small locally owned independent business to make your own decisions. It’s not smart to waste time and stretch relationships with arguments that have already been settled, and the results of those arguments proven out.

The question that brought this topic up is retail price endings. Should prices end in 9’s, 8’s, 7’s, or 5’s? My opinion, and to the best of my knowledge the most profitable answer is 9’s. There is research both anecdotal and qualitative that proves the consumer does not see the difference. The correct answer is 9’s. Case closed, although there is an exception on items higher than $20, or the  point where you begin rounding off yourself to the higher penny. In other words, if you find yourself telling a customer that a $19.99 item is $20 that is the place to begin changing to zero cent pricing at odd dollar amounts. It works, it’s been proven to work, and you don’t need to do anything more than begin making more money where your customers perceive the value is there and you have been under-charging your potential.

“You don’t have to be smart, just do what smart people already do.” – author unknown

Watch for an announcement coming soon for our Practical Pricing webinar. You don’t have to be smart to price smartly.

Advertisement