$4.99 converts 4.67% and $5.00 converts 3.84% It is not so much a pricing strategy as a pricing tactic, but the use of the number ‘9’ is common in pricing products to sell. One study found that: $4.99 led to a conversion rate of 4.67% $5.00 led to a conversion rate of 3.84% $2.99 led […]

$4.99 converts 4.67% and $5.00 converts 3.84% It is not so much a pricing strategy as a pricing tactic, but the use of the number ‘9’ is common in pricing products to sell. One study found that: $4.99 led to a conversion rate of 4.67% $5.00 led to a conversion rate of 3.84% $2.99 led to a conversion rate of 3.44% $3.00 led to a conversion rate of 2.11% It might seem counter-intuitive, but despite the logic that there is little difference (and in the absence of one cent coins there is no effective difference) between $4.99 and $5.00, conversion rates are significantly higher when the price is $4.99. This is just one of many examples of how the number 9 can influence purchase behaviour. The use of the number 9 is just one of the many psychological considerations in pricing.Other interesting psychological pricing tactics include: Prices without commas are…