Odd pricing strategy is the practice of pricing your product ending with an odd faction of a dollar to enhance consumer response. In other words, $59.97 is going to sell more than $60.00. In similar fashion, $197 will do better for you than $200.
This occurs to me because I just searched waterproof watches on the web and came up with a Zenith Defy Xtreme Sea Tourbillion Titanium priced at $87,711.99. I admit I haven’t seen their market research data, but I’m going to hazard a guess that response to that vs. $87,712.00 isn’t going to be that great. “You know, I thought $87,711.99 was reasonable, but just can’t swallow the seven twelve.”
What makes a watch cost so much? The ad says, “This timepiece features a visible tourbillon, chronograph and luminous hands.” Oh well, for a transparent face and glow-in-the-dark hands, I’d expect to pay the price of a condo.
It is water resistant (not water proof) to 3,300 feet. You’d be the thickness of a credit card at that depth but would have had the comfort of knowing your watch lives on.
You can spend the money with confidence because it carries a one-year limited guarantee. For that kind of bread, I’d want them standing behind it until we colonize Mars.
They urge you to buy now because the risk of their selling out is very high. I’ll take my chances.
Until academia realizes the need for a degree track in "The world would be fine if everyone just listened to Henry," there is this site. (All content copyright 2010, Henry E. Dorfman)
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2 comments:
Would like to hear you say more about the odd-ending pricing. Does it really get a better consumer response? Personally, I find it annoying and insulting to my intelligence, but it must work or companies wouldn't keep doing it, right?
Funny about the watch. The tax alone would buy you a couple of nice QCC's.
You're correct. In this country, consumers respond better to the odd price. Overseas, not so much. Thinking is that people here have been conditioned.
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