Why 99 Cents Is Much Less than a Dollar

There is quite a bit of research out there that makes us all want to jump on the 99 cent fractional and psychological pricing strategy. You can read all you want about how $1.99 looks like much less than $2.00 and $399.99 looks like less than $400.00. Yes, its true, consumers will go for the 99 cents more often than straight out whole dollar, but is it the right thing to do?

Gimmick Price Points

What is a business saying when the very first thing that the customer, who is about to trust that business with their money, sees is a manipulative price point? “We want to trick you into thinking this product costs less”. Consumers know that $1.99 is basically the same thing as $2. They also know that the price is set this way for a reason; to trick them into thinking it looks like less. Oh did I say trick again? Does that sound a little harsh? It should sound harsh and it should be a wake-up call for the entire country.

Mistrust Is the Norm

Fractional pricing has become so common place that people have excepted it and moved on knowing that no matter what they try to purchase, that businesses are trying to mess with their heads from the get go. So it is standard procedure to price in such a way as to make people think it actually looks like less than it is and it is also a very effective technique. It's not lying as the price is clearly stated, (even if it is more complicated and time consuming to capture in the brain), it's not really deceiving in anyway, but it is a form manipulation that condescends us.

Set Your Own Standards

There is a large chance that if a business swaps out their 99s for dollars, that they could stand to lose some sales to their competitors because they lack the psychological effect. Bad for business maybe but good for ethics. You won't find any fractional prices on this website.