Psychological Pricing: Strategies and Case Studies

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Have you ever wondered why so many things in stores are priced at 99, 95 or 90 cents, even though they cost X dollars/euro/pounds? In fact, this is no coincidence - it's a pricing strategy called psychological pricing. And strangely enough, it has been proven time and again to be one of the most effective ways to increase sales through pricing strategies. But it's not just about pricing every product on your physical or virtual shelves at X dollars and 95, 98 or 99 cents. Here we will dig deeper into psychological pricing and introduce some typical strategies and examples.
What exactly is psychological pricing and where can you encounter it?

Psychological pricing, one of the oldest marketing strategies, is most often used by retailers to give customers an edge and psychologically impact their decision to buy. In marketing literature, the term psychological pricing is often used in a very neat way, such as price ending and charm price .
The whole point of psychological pricing is to make the price bosnia and herzegovina telegram database seem smaller than the next round number (e.g. $5.99 instead of $6). But the trick is in human psychology. Six dollars minus one cent . In our minds, five dollars and ninety-nine cents are two completely different things than the whole six dollars. It seems weird, right? But it's true. That's why advertisers say "starting at $XX" but in reality it's only a cent or a few cents different. Like in this example, you think you're spending $5 instead of $6.


A really cool infographic that shows the power of psychological pricing. By letting your customers know the difference in price, they are more likely to buy. It works.
Psychological pricing is mostly used in retail stores where prices are competitive. In wholesale, it is less advantageous since prices are often dependent on quotes and individual pricing strategies.
Examples of psychological and attractive pricing strategies
As we mentioned earlier, there are many different ways to implement psychological pricing into the way you do business. At Atlasmic, we're here to help you by listing out the most common and commonly used psychological pricing strategies one by one. Let's get started!