1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Whats With The Crazy Prices

Discussion in 'BlackHat Lounge' started by drax2009, Aug 18, 2011.

  1. drax2009

    drax2009 Registered Member

    Joined:
    Oct 28, 2009
    Messages:
    84
    Likes Received:
    14
    Can anyone explain why the feck everyone sells sh!t at $97 or $147 - why not $99, $149 or even better $100 or $150 - are they really fooling anyone with this 'crazy psychological shit'?

    Dont know why it wnds me up - it just does - come on marketers get your shit together :)
     
  2. Lalalaenhund

    Lalalaenhund Power Member

    Joined:
    Sep 14, 2010
    Messages:
    738
    Likes Received:
    418
    Location:
    errywhere
    No matter how obvious everyone thinks it is, it has still been proven to work. So why leave money on the table?
     
  3. davids355

    davids355 Jr. VIP Jr. VIP Premium Member

    Joined:
    Apr 25, 2011
    Messages:
    8,795
    Likes Received:
    6,344
    Home Page:
    It's true it just work. $97 means something intrinsically different to $100.
     
  4. BassTrackerBoats

    BassTrackerBoats Moderator Staff Member Moderator Jr. VIP

    Joined:
    Mar 10, 2010
    Messages:
    12,787
    Likes Received:
    22,035
    Occupation:
    I don't actually have a job
    Location:
    It's an Algo, of course it can be gamed.
    Home Page:
    Actually it is an internet law that you have to charge a crazy number. It was passed in 1999 and a violation of that law can be punishable by having your site de-indexed.
     
    • Thanks Thanks x 8
  5. Mises

    Mises Junior Member

    Joined:
    Jan 11, 2010
    Messages:
    110
    Likes Received:
    51
    There have been empirical studies on the matter that suggest price points like 99 are better than 100 (I think 97 is the best if I remember correctly from a recent study I saw)- all psychological, but hey, we're all predictably irrational (as behavioral economist Dan Ariely would say :p)
     
  6. Virus1

    Virus1 Supreme Member

    Joined:
    Dec 13, 2010
    Messages:
    1,326
    Likes Received:
    1,409
    Occupation:
    destroyer of worlds...
    Location:
    Welcome to Black Hat World........................
    Home Page:
    Well if you want a real answer to that question.. here is my price sheet..


    Answers... $47.00;
    Answers Which Require Thought... $67.00;
    Correct Answers... $87.00.
    Dumb looks use to be free but are now only $7
     
    • Thanks Thanks x 2
  7. Monrox

    Monrox Power Member

    Joined:
    Apr 9, 2010
    Messages:
    615
    Likes Received:
    579
    It's the result of reading unqualified pamphlets lovingly called books by their authors.

    What usually works better for me is the three prices principle: given 2 choices most people buy the cheaper product. Given 3 choices the majority takes the item priced in the middle. They don't feel cheap and also believe that things placed at some midpoint price inherently are the best compromise between quality and price. The example was given with bicycles, and yeah, it described exactly the choice I had made :D

    With services often there are silver, gold and platinum packages. Bronze is being phased out and platinum intorduced so that gold naturally becomes the right choice. Similar strategies with cars, pools, waterbeds...

    ----------------
    Addendum: I do not deny that 129.99 is better than 130.00. I was rather commenting on the trend to price stuff exactly like the competition, e.g. 97 or 147 etc.
     
    • Thanks Thanks x 1
    Last edited: Aug 19, 2011
  8. salec1

    salec1 Newbie

    Joined:
    Aug 15, 2011
    Messages:
    41
    Likes Received:
    26
    There have been studies on the matter that suggest a price of $0.99 sell 13% more than $1. It's money on the table to be frank, so it's no surprise that internet marketers use this strategy.
     
  9. m0nster

    m0nster Senior Member

    Joined:
    Oct 20, 2010
    Messages:
    1,044
    Likes Received:
    1,003
    Occupation:
    Offline Marketing
    Location:
    USA
    buy my ebook for 3,141,592.65 and it will reveal to you the secret
     
    Last edited: Aug 19, 2011
  10. The Volatile

    The Volatile Junior Member

    Joined:
    Feb 15, 2011
    Messages:
    161
    Likes Received:
    136
    Location:
    Is Everything
    I was a sales manager at a multimillion dollar travel agency for several years. Several days were dedicated to training the sales staff on the importance of price points and closing the sale. Trust me, this 'crazy psychological shit' works!
     
  11. TNphoneman

    TNphoneman Senior Member

    Joined:
    Dec 15, 2010
    Messages:
    1,177
    Likes Received:
    695
    The same reason you see 10 for $10 sales. My ex used to buy things because they were on sale.... But we did not need 10 of them. It is all in the mind and is why you see things priced at 19.99 or 19.95 and people bought them but if they were priced at 20.00 they would pass on them. You see that first number only for most people and a 2 is larger than a 1. I would always argue this with her because she would see something priced at 4.95 as 4 and I see it at 5. Just a difference in the psyche of people. If 3 people buy at $100 but 5 people buy at $97 then you are not leaving $9 dollars on the table, you are picking up an extra $194.
     
  12. ScrapeBoss

    ScrapeBoss Elite Member Premium Member

    Joined:
    Nov 25, 2010
    Messages:
    1,865
    Likes Received:
    669
    Location:
    123.456.789.012.345.678.901.234.567
    Home Page:
    "7" is seen as a powerful number affecting the ways human beings behave.
     
  13. marcuskona

    marcuskona Junior Member

    Joined:
    Sep 27, 2008
    Messages:
    168
    Likes Received:
    654
    Occupation:
    IT
    Location:
    127.0.0.1
    Home Page:
    you're avatar does the same. :D
     
  14. redmoon

    redmoon Regular Member

    Joined:
    Aug 19, 2009
    Messages:
    245
    Likes Received:
    73
    The reason is because it works. Especially if you price something for $100 instead of $99 that extra digit will lose sales. I thought it was some psychological bs too until I tried it myself and made twice as many sales for $99.
     
  15. globalim

    globalim Newbie

    Joined:
    Jun 24, 2009
    Messages:
    28
    Likes Received:
    40
    I've had this happen to me
     
    • Thanks Thanks x 1
  16. Pixel Pirate

    Pixel Pirate Junior Member

    Joined:
    Jun 24, 2010
    Messages:
    124
    Likes Received:
    100
    They're not trying to fool people. It's a marketing tactic that happens to work. That doesn't mean people are conscious of it.
     
  17. ScrapeBoss

    ScrapeBoss Elite Member Premium Member

    Joined:
    Nov 25, 2010
    Messages:
    1,865
    Likes Received:
    669
    Location:
    123.456.789.012.345.678.901.234.567
    Home Page:
    Nothing wrong with it. Just a gentle guy :D

     
    • Thanks Thanks x 1
  18. TNphoneman

    TNphoneman Senior Member

    Joined:
    Dec 15, 2010
    Messages:
    1,177
    Likes Received:
    695
    BHW discount