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Why do marketers like to price their number with a 7?

Discussion in 'BlackHat Lounge' started by jyang, Mar 21, 2010.

  1. jyang

    jyang Regular Member

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    Examples include:

    $27
    $197
    $697

    Is there a reason behind it?
     
  2. Deviance

    Deviance Regular Member

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    Because all the cool kids do it.
     
  3. tacopalypse

    tacopalypse Executive VIP Jr. VIP Premium Member

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    everyone got used to seeing 99's everywhere so now 97's the new 99.

    it really works too

    i'm frequently shocked by my grocery store receipts because it looks like there's no possible way the individual items can add up to the total amount. it's all those damn .97's and .95's

    :D
     
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  4. MagicMike

    MagicMike Power Member

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    "Apparently" there has been a lot of research into this (although I always hear it "referred" to but have never actually seen it).

    Seemingly the "7" leads to a higher conversion rate. There has also, supposedly been much research saying that a product selling for $17 or $27 makes no difference to the buyer... the conversion rates stay about the same... which is probably why we see a lot of ebooks selling for the $27 price point.

    Is it all true? Don't know... I fall into the category of those who have not personally tested it... but I can tell you that my products do end in "7". Already jumped on the bandwagon! My sense is that it is more acceptable than the "27.99" price we are so accustomed to in retail stores. Just my feeling, not tested by me.
     
  5. pyronaut

    pyronaut Executive VIP

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    Wouldn't it all come back to that magic trick?

    Think of a number between 1 and 10.

    Nine times out of Ten, someone will choose 7. I don't know why, but they just do. Saw it on one of those street magic shows one time, like david blane or whatever his name is.
     
  6. MikeHustle

    MikeHustle Power Member

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    I'm going to test this on a product that I've been selling for only $10. I'm going to make it $17 and see how my numbers look.
     
  7. spcldeal

    spcldeal Registered Member

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    You forgot the popular one I have seen a lot of lately $1997. There was actually (maybe still is) an e-book for sale on this for like $97 that explained the psychological pricing structure that resulted in higher conversions and this e-book supposedly revealed the number you were never supposed to include as it was "bad" - don't know the number though - I would think it is 5 (I use the S.W.A.G. method for that guess).