Originally Posted by MYSB Editor
Interesting topic. I used to believe that $9.99 was psychologically better than $10. Let's face it. A lot of business did (and still do) it. But I think consumers are more savvy now and $9.99 is just $10 to them. I know I always round up when I look at a price, especially if it's just a freaking penny (or even when it's less than a dollar).
We offer our major product, an online membership subscription small business marketing e-zine, for $249 a year. So we round one DOLLAR down ($249 instead of $250) but I don't think it fools anyone.
There must be some sort of rounding as the numbers go higher. $249 is $250 in my book, a $37,248.99 truck is $38,000, and a $942,333.00 house is a million dollar house!
On the other side of this discussion there is the implied discount. Would you rather buy a item with a $65.00 value for $12.00 or the $9.99 without any discount? Most people that I know buy "on sale" or "discounted" items not knowing that the "sale" or "discount" is fake. A good example are .info's, regular price $7.99 or $9.99 on sale for $2.99---everywhere they sell them. This really makes the $2.99 the going rate and takes away from the implied discount.