Precise Prizes vs. Round Prizes

[Brutha]

A Precise Price Can Increase Sales
This article makes the case, that customers feel that a house that sells at $553,505 is cheaper than one that sells at $550,000.

Since we have many entrepreneurs in this forum, how do you set your prices? Precise or Round?

[Gene]

Originally Posted by Brutha

A Precise Price Can Increase Sales
This article makes the case, that customers feel that a house that sells at $553,505 is cheaper than one that sells at $550,000.

Since we have many entrepreneurs in this forum, how do you set your prices? Precise or Round?

I almost always precise price. My experience tells me customers are more likely to buy at $9.99 than at $10.00 and even more amazing they are more likely to buy at $9.99 than at $9.00. Strange but true for me.

[1000feet]

I try to use $5 increments; if I say a project will cost exactly $3000 it seems like the customer will think there's no real basis for the price. I usually come up with a range instead of an exact price so I have some flexibility in how I present it.