[Market-farming] 19.99 vs $20, deal vs quality

Beth Spaugh lists at rhomestead.com
Sat Aug 4 16:49:56 EDT 2007


The following is an excerpt from some "almost spam" that I just got, but
thought would interest folks:
 
Consider whether something is "inexpensive" or "cheap," "pre-owned" or
"used." There are very subtle forces at work that marketers have been aware
of for decades. Ask yourself why sometimes an item is $19.99 and sometimes
it is $20. Lowering the price by a penny is purposeful, as it signals
"discount" or "sale," and is designed to get your attention, to make you, on
a more subconscious level, think you're getting a deal. However, if the
seller wants to convey quality rather than discount, if he wants to create
an impression of value, he leaves it at a nice round $20, because nice
things aren't discounted. 

 

(Just as an aside, if you've noticed that products on infomercials are
nearly always $19.95, or broken up into payments of $19.95, it's because the
general rule is that just about everybody's got an extra 20 bucks lying
around. You get to the $25 or above range and people start to think about it
harder.)

 

Beth Spaugh
Rehoboth Homestead
Peru NY
http://rhomestead.com <http://rhomestead.com/> 


 

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