Business Growth Power Principle # 37

Principle 37

Supermarket Pricing

A proven method of moving product faster

It’s an odd thing:

99 pence is a pound less a penny but most people do not think of it as a pound.

£19.99 is £20 less a penny but most people see £19.

Staggeringly, a car costing £9,999 is seen as not £10,000 but £9,000 odd.

Strange but true. There is perhaps a psychological defect somewhere in us that just doesn’t recognise these prices for what they really are. The alternative is that we do see the real price but somehow justify to ourselves, or those that we feel may judge us, that the price is only £999.99 and not £1,000.

Whatever the answer, supermarket pricing really works and works well! Just look around at all the goods and services that are on offer that utilise this little trick. There’s good reason for it – It works!

Ted Nicholas, a well known self-publisher and marketer, says that using the number ‘7’ in pricing is even better than ‘9’. I don’t pretend to understand the mysteries behind that but he swears that £19.97, £47.77, £97.97, etc, massively outperforms those prices with ‘9’ at the end.

The point is this; whatever you are selling, supermarket pricing will help move product faster. For the sake of a penny you must use it, or put better: Look after the pennies and the pounds will take care of themselves.

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