Is it More High-End to Price Items Without Decimal Points?
Q: "We want to change some of our pricing from, say, $7.95 to $7.99." You're not serious, right? Like, you want to raise it 4 cents. That can't be what you're saying. "We're a high-end bathing and grooming shop. Is it classier or better to go to $8 instead of $7.99? I know the psychology of $0.99 is typically better, but someone mentioned it being more high-end to be a straight price."
A: If that's the biggest decision you have to make, Stacy, I think you're having a fine day. I am not there with you so I don't know what the product is, but there is a lot to pricing and there's a lot of information out there you can see.
Once you cross that $10 mark, things start changing. And once you cross that $19.99 mark, mentally things start changing for your shopper. But I'll say this. If somebody will pay $13 or $12, they'll probably pay $15. And if someone will pay $16, they'll probably pay $19.
There is a whole school of thought that prices ending in 7's move better. I don't know of any study proving that. Most boutiques can raise their prices a bit to help makeup for damages and returns and most customers will not notice since they don't know what you paid for the item or the deal you received on dating.
I think that whole prices certainly can be even, but I don't think the customer is sitting there, thinking like, "Wow, this is higher end. It's $8 instead of $7.99."