Ask HN: How much difference does it make today by pricing $*.99 | Hacker News Reader

Ask HN: How much difference does it make today by pricing $*.99

6 pointsBuddhaSource5 comments

This is a very broad question, I have read that it takes same efforts to convert $5 & $10. In that case how much does .99 help in today's online services.

It can have different results for business products and consumer products. I find .99 little messy and feel somebody who is ready to buy is not looking for 1cent discount.

However I can be wrong in many ways, does anybody have conversion metrics taken recently? - What are the pros and cons? - How is it different for consumer and business pricing? - Who are the target audiences who will be affected by this change?

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I have a feeling this has been discussed before. At any rate, here are some links:

http://blog.kissmetrics.com/5-psychological-studies/

https://en.wikipedia.org/wiki/Psychological_pricing

IIRC, the whole "99 cent pricing" paradigm originated not as a method to subtly reduce the apparent price of products, but as a way to force cashiers to give change for all purchases, and thus open the register so that all transactions could be recorded.

Of course, this practice is completely obsolete in online shopping, while the psychological pricing effect remains.

This is apparently a subject of debate (see: http://skeptics.stackexchange.com/questions/2359/the-origin-...)

Most sources agree that its origins are in psychology, though your theory may explain its widespread adoption by retailers:

http://www.helium.com/items/705308-the-history-of-odd-retail...

http://www.eurekalert.org/pub_releases/2011-09/ru-9pm090611....

Exactly my point, in online shopping pricing it .99 has any affect globally? I am very curious.

Making it harder for employees to pocket the cash and pretend the transaction never happened, one of the most common techniques used by cashiers to increase their hourly wage. Just thought I'd explain a little bit more for anyone who still didn't get it.

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