Definition of Odd Pricing
This psychological pricing strategy focuses on the first number of the price of an item or service, by selecting odd cent numbers.
Description of Odd Pricing
People tend to focus more on the left side of a price than the right. For instance, $19.99 looks a lot more appealing than $20.00 because the latter has a great left side.
Advantages of Odd Pricing
This method allows you to make more money since the price will look better in the eyes of consumers. Also, when it comes to ecommerce, it’s great when you price your item, for instance, at $99.99 since it’ll fall under the category of under $100.
Disadvantages of Odd Pricing
Generally, people find it easier to add up whole numbers instead of those with decimals, which makes shopping difficult. Additionally, you have to actually prove to consumers that your item is worth that much. In other words, a quality item doesn’t even need to utilize this pricing strategy whereas a weak item can’t be saved with this method.