Retail Pricing Strategies, what are the secrets?

[Reflo Ltd]

I know that the concept of .99 pricing is a purely psychological one. Instead of $10, $9.99 seems to attract more buyers.

However, I seem to think that there are further psychological elements that refine this. Such as... is .95 better than .99... or is .97 best. How about .50?

Does anyone have any insight on this? I haven't had much luck searching online. Maybe I am just searching for the wrong thing.

[Reflo Ltd]

Doing some reading online I did come across this interesting bit about pricing psychology. It does not address the question I have in the original post but is is very interesting with regard to the buyer's perception of pricing.

price setting article (http://www.marketingpsychology.com/price1.htm)

[Harold Mansfield]

Online strategies are different from brick and mortar strategies. Which are you asking about?

[TotalPC]

i once read that .97 works best. There was some reason behind it, but i cant remember and I dont have the source.

[Steve B]

I once read there is no proof that .99 or .97 works any better than $1.00. It seemed from this article, that the retailers were just following what everyone else did.

I always thought if I had a retail store - I'd price everything so that it came out to an even amount after the tax was applied.

[mettro2]

In my opinion it depends on many different factors. Factors like who are your costumers and what are the products you are selling. For example, some businesses want to project that they are clear and transparent so because of that they'll use round numbers. Usually the .99s and .97s work very well for impulse purchase products.