EP31: Charm pricing tactics - what is it and is it ethical?

Episode Description Have you noticed how majority of prices end with a 9, 7, or 5. That is, $9.99 or $997. This is a pricing tactic called charm pricing and it is everywhere. The most common prices end in numbers are 9 and 5, according to a 1997 study, which found that these cents endings accounted for 90% of the 840 prices they analysed (60% ended in 9, 30% ended in 5). It is so common because it is effective. Most languages are written from left to right and the psychology of it is that the first number makes more of an impression than the numbers behind it, so if you see the 4 in $4.97, you’ll think you’re getting a greater value, even if it you’re only saving 3 cents. Another example, $997 seems like it’s “under a thousand dollars” instead of $1,000 which can make people think “wow, it’s a thousand dollars!” But the main question for today is - is it ethical and should you choose to use it? In this episode, you'll hear: What is charm pricing Why it is effective Is it ethical I have taken the pledge with The Ethical Move to not use charm pricing or any other manipulative pricing tactics in my business. I would like to challenge you to think about this, and if right for you, take the pledge as well at: https://www.theethicalmove.org/pledge/ If you found value in this podcast, make sure to subscribe so you get notified when the next episode is released. Also, if you could to do me a huge favour - please leave a review. It helps other entrepreneurs like you find the show and build their businesses too. If you want to connect with me, come hang out on Insta https://www.instagram.com/bonniewix.biz/ Or Join my FaceBook group - SHINE in Business https://www.facebook.com/groups/shineinbusiness Until next time, Keep shining bright 🌻 Bonnie Wix