Your prices end in the same number, usually 9. That’s likely not a conscious decision, it’s a habit no one questioned.
Conventional wisdom says pricing products to end with 9 drives more volume. The research is mixed, with some studies supporting and others refuting it.
Arbitrarily pricing products with a 9-ending ignores the unique circumstances of your business. One rule, applied to the entire product catalog, overrides your deliberate pricing strategy.
9-ending prices are not right or wrong. The problem is many businesses don’t ask which products should have that price signal, and which should not.
How clearly can you articulate your pricing strategy and tactics? When did you last thoroughly review your product prices and adjust them?
If the answers are “not very” and “I cannot remember,” you need a pricing strategy and the tactics to implement it, not a pricing rule. Your customized pricing strategy is based on the products you sell, the competitive dynamics of your industry, the value only you offer, and where you are taking the business.
Price endings are only one factor for pricing your products and positioning your business for growth. We will discuss others in the future.
What’s the worst pricing advice you received? Share your comments below.
