A buddy of mine
will buy an item priced at
$19.99
much faster than
an item priced at
$20.00.
Why?
Because 1 is much less than 2.
That first digit
in the price
makes a huge difference to her.
It makes no d@mn sense.
It is only a penny cheaper.
Yet many of us
think the same way.
It is called
left-digit bias.
As Jeff Haden explains
“the leftmost digit of a number
disproportionately
influences decision-making.”
We perceive
prices ending with .99
as being bargains
and we buy more.
Researchers estimate
“ending every price with .99
would boost profits
by as much as 4 to 5 percent.”
End your prices
with .99.