Prices With Decimals

Sep 9, 2008

We all see this and not just in the hosting industry. Prices like 7.95$ or 5.99$ or 1.90$. They mean just 8$, 6$ and 2$ on the excel sheet plus come cents more or less.

But for the customer he prefers to see the first digit only, just the 7 instead that he know hes is almost paying 8$.
Now, do people actually think this has some effect in the customer?

Do you think a price like 7.95$ actually looks cheaper then just a straight 8$ for example.

I know then when i look at such an price i just round it directly to 8$ so i that trick doest work on me and im sure it doesnt in allot of other people. When i shop online i just calculated all the products rounded directly so i get a higher price of what im paying. On the checkout i save just a little cents but i know i paid basically an exact number.

Now my discussion was to be able to know in what benefits and or hurts to use those prices for a company. Do people prefer decimal prices or do they just prefer a straight price. And why instead of 7.95$ people dont just use 8.20$. The price is basically the same, 8$ for the viewer or shopper but you are still making 20 cents more that the customer doesn't, care instead of actually losing 5 cents in each transaction.

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Expensive -
Above average -
Median/Average -
Good -
Excellent -

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Median/Average -
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Median/Average -
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Excellent -

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