The Origins of Odd Pricing

Odd Pricing and More

For as long as retailers have tried to sell goods to consumers , they have strived to get the most out of the business exchange . However , a phenomenon known as odd , or psychological , pricing has been in play since the nineteenth century . While many may not be familiar with the term itself , all are sure to be familiar with the practice . Odd pricing takes place when an item is sold at a price such as 1 .99 , as opposed to 2 .00 . Though there is little difference between the two prices

, the mind automatically sees 1 .99 as being quite a bit cheaper than 2 .00 though there is hardly any difference worth speaking of

The origin of this practice is not known , though some suggest it may have been a way to discourage theft on the part of the employees Employees were less likely to steal from a store if they had to make change , as opposed to simply taking and pocketing one bill . Today it is used to get customers to pay higher prices than they would in normal circumstances , manipulating the brain to think that the price is lower than it actually is . Tests have been completed that indicate that buyers are much more susceptible to buying products with prices that end in .99 , as opposed to other numbers , even if the number is actually less (Dickerson

Retailers also use unit pricing , which causes buyers to believe they are getting a deal , when in actuality they are paying far more for a particular unit than they would if they paid a bit more for a combination of units . An example of this is buying a twenty ounce soft drink for a dollar , when a six-pack might be bought for 4 .99 . In addition to this , retailers practice product-line pricing and promotional pricing with the hopes of luring more buyers to purchase goods that they might not actually need , but because they feel that they may be getting a bargain they go ahead and buy (Dickerson , Oxbent

Works Cited

Dickerson , Adam . The Odd Pricing Phenomenon . Harcourt Press . New York 2002

Elliott , Christopher . How To Sell Anything . Bracegirdle Books Pensacola : 1998...