We are all familiar with the concept of products priced at $39 selling better than the same product sold for $40. We are familiar with the concept that the number ‘9’ can create the illusion that $39 is much cheaper than $40 (despite the paltry 0.025% reduction in the price) – but we respond to […]

We are all familiar with the concept of products priced at $39 selling better than the same product sold for $40. We are familiar with the concept that the number ‘9’ can create the illusion that $39 is much cheaper than $40 (despite the paltry 0.025% reduction in the price) – but we respond to it. Research by William Poundstone consistently found that a product will consistently sell better at $39 than at $40. Poundstone also compared sales at three price points – $39, $34, and $40 – finding that $39 generated the highest level of sales Than both $40 and $34. It seems that ‘9’ improves the perception of value even when it is not at the lowest price. However, in another study, researchers found that the offer – ‘was $48 – now $40’ – generated significantly more sales than the price point – ‘$39.’ Price comparison or providing…