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186

We want it to feel cheap when we buy but not when we give.


43

The psychology behind the $0.99 was explored in depth in Priceless: The Hidden Psychology of Value, which if you ask for my humble opinion, is a life-changing book. Partly the reason for such price tags is that it translates for many as a 'sale' price. Against it, is that it is typically associated with 'hard sale'. The donation payment system is in its ...


16

It's explained in Amazon's website, in this page Why don't we show the price?: Retailers like Amazon have the legal right to set their own prices independently, but some manufacturers place restrictions on how those prices may be communicated. Because our price on this item is lower than the manufacturer's "minimum advertised price," the ...


13

The psychology behind the $99 was explored in depth in Priceless: The Hidden Psychology of Value, which if you ask for my humble opinion, is a life-changing book. 9 is the Magic Number A price such as $99, or $14.95 are known as charm price. Research suggests that the most effective charm price is that ending with 9. A University of Chicago/MIT research ...


9

Pricing strategy is not universal, and what may work on one site might not on another. You really have to do some A/B price testing, and see what works. However, I would always give the person that chose to buy at a higher price, whichever the lower price is. It will save you a lot of animosity if you do that. That said, I read a study that was part of ...


8

Pricing is an important marketing tool and well understood by science in the late 80. Supermarkets were the driver for this research. Shoping at stores is sooo incredible designed, you wouldn't believe it, if they tell you everything they do. If you search for pricing strategies online, you will find a lot of resources at universities of economy. I've read ...


8

This is a strategy usually followed by companies that follow price discrimination as a strategy. This could be because: The cost of providing that product actually depends (usually statistically) on who is asking for it. Think of insurance companies here, where a healthy 18 year old with no history of medical problems is likely to cost a lot less to ...


6

Depending on what the app does, more creative solutions may be found. As @Peter said, nagging every 5 minutes is extremely annoying and it makes users hate you, right at the point where you most need them to like you. How about nagging them only on startup? Or inserting a waiting period on startup, similarly to what rapidshare et al are doing? It may grow ...


5

As per the article from UX Movement Place Them in Descending Order It’s a lot easier for users to move down on pricing than it is for them to move up. Start them off at the high-end and they won’t be able to ignore your high pricing plans. Start them off at the low-end and they’ll likely ignore the higher pricing plans and consider only ...


5

Don't hide pricing information from the buyer, especially if there's a chance that information could inspire them to "Proceed to checkout". Also, if they don't see the savings there, they might go to another site to look.


5

Are you planning that light version anyway? If not, don't bother, give everyone the 30 trial, and then ‘lock’ the application until they pay (have a big “Buy” button) or quit. If you're planning that light version, let them use it for as long as they want, and make sure the full version has enough meat to make them buy it. Nagging me every 5 minutes is the ...


5

One approach you've not mentioned and might work for you is something I've seen VisionApp do with it's latest versions: Provide the full application by default. There is no "lite" version. But then there is a free version that has fewer features. Customers get the full version effectively on trial for n-days, then after that time they can either pay for the ...


5

Perhaps you could consider a design where you have a bar-chart of prices over your period. I have seen a design like that on airline sites, and I liked it a lot. Horizontally, you'd set your arrival dates, and vertically the price. You'd start with a standard-length stay, that the user might customize. I am not sure if showing a single night would make most ...


4

Overall I think that the effect from this will be negative for any sites in which the historical pricing is not a major factor (such as stock market websites). The sites for which it is useful are almost always targeted at professionals that (should) use objective criteria to evaluate whether to buy or not. When dealing with the general public, their ...


4

It all depends on what product you are trying to sell and what question will you be helping the user to answer. These could fundamentally affect how the pricing information is presented. For instance, "which flavor of your product should I be buying?" (lead by feature) is a totally different question from "What is the cheapest price I can buy your product ...


4

Izhaki's answer pretty much covers everything related to the UX and psychology behind the x.99 pricing. But there's more -- the x.99 pricing is the key to a killer marketing strategy -- figures for discounts and offers are cleverly crafted numbers, which are almost always impossible to reach without buying one extra item. Why? Because discounts are offered ...


3

Don't put your price inside the interaction point. If I am looking for a price then buttons are perceived as grey matter. I don't expect to find the answer there. I'm looking for specific visual clues: a dollar sign ($), the words "price" or "for only", a number with .99 after it. I can appreciate wanting to be tasteful, but your primary goal is ...


3

I too started out with a 30 day trial model. Now a days I provide all the funtionality for free, except the ability to save bigger projects. In order to save big projects the user must pay for the product.


2

I worked for a certain large online retailer for several years. I can tell you there's a continual back-and-forth going on between retailers and manufacturers on the issue of Minimum Advertised Price (or MAP). It's literally discussed at almost every meeting with a manufacturer. A few years ago, letting customers click to see the price instead of adding to ...


2

I have a book somewhere (don't remember which, need to look it up) which explains that it's more important to have a short number, rather than low. $9.99 looks longer (larger) than $10. Then again, $10.00 looks larger than $9.99 The same book suggested a whole different approach: If you have a product of $10, introduce another product of -say- $12. Even if ...


2

Studies done on the effects of price/promotion framing on price expectations and choice indicate that there are definite eCommerce benefits to offering this information to users at the product display page level. Also useful to decide how this information is displayed and whether to use cost saving, percentage saving or a combination of both. Some useful ...


2

Yes, why not? If the price is one of the main decisive factors, I cannot see anything against it. You should just make sure that the price user will see after clicking the ad is the same (which is most difficult when speaking abou distribution through many indeoendent channels, out of which each can set price which is different from the suggested one). By ...


2

The questions you should start with are: 1. Is the header necessary in its current form? Intuition tells me you may be able to achieve your goals by reframing the header's message, which avoids this problem entirely. 2. Is the plan breakdown sufficiently clear and quickly digestible? By placing emphasis on the plan titles themselves and a crystal clear ...


1

One of the most annoying things about buying is finding the price. Either on a normal store or in a website. If the price is not clearly visible, you give the idea of hidden costs and unfriendliness towards your clients; if you show them you are open and will avoid false hopes, all your visitor will be there because they want to know more about the product ...


1

I would suggest that you have obvious buttons on your homepage that lead to both the Overview and the Plans. "From $299" is not a call to action, so as a user I may not be really sure what I'm going to get. Better to have buttons like... "Learn more about our advertising" (links to Overview) "View Plans and Sign up" (links to Plans).


1

One of the reasons why people purchase items online is to save money. I would make the saving the second prominent information, being the first one the final price of the item.


1

N=1 here but I think you should always show what people are saving. I would also always show the % next to a monetary value. Reason behind it is that 4 dollars might not sound like a lot. But if that 4 dollars means 55% OFF it will definitely make people thing they are getting a good deal, which will mean you increase sales.


1

Information is king! I think the problem lies in how you are displaying the information to the user, the primary data is how much the user is paying and this should be made the most prominent. However, the secondary data is something likely to inspire them, Saved $10 (5%) is great information. Always test test test with users and see what they think, you ...


1

$19.99 sounds cheaper than $20. Although most people can tell that they're pretty close, it's still a marketing strategy that some people fall for. The human brain will sometimes register $19.99 as $19, instead of $20. · http://www.marktaw.com/culture_and_media/1999vs2000.html · http://answers.yahoo.com/question/index?qid=20081223014045AA0ufcV · ...


1

Prices like 0.99 or 99 have softening effect and are received better by customers in general. When choosing between $100 VS $99, a good question would be the difference between the values which is $1 but one is 3 digits number and other is 2 digits. Once you jump from 2 digits to 3, 100, 101 and 102 like prices are still perceived as 100. I am personally ...



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