Small Differences that Look Big

Beware small price differences which buyers perceive as big. $9.99 will pull many more buyers than $10 — with two possible exceptions: Luxury products and products without an alternative that is acceptable to the buyer. Companies without viable competitors have seen no drop-off in orders after raising a price from $19.95 to $21.95. Source: The Tao of Pricing. #pricing #pricingpsychology #entrepreneurs