| Have you ever wondered why all those products on | | | | shoe store for these prices." Any less and they |
| TV all cost $19.95? How about why used car | | | | question the quality of the shoes, Look them over |
| dealers...excuse me, "preowned" car dealers offer | | | | again and agian, then walk away without buying. |
| $199 down $199 a month? | | | | I won't make a value judgement about peoples' |
| It's an often used and very successful marketing | | | | behavior. The object is to make sales, not judge your |
| concept. The idea is that certain numbers set off | | | | customers right? The simple fact is for every product |
| alarm bells in a buyers mind and by shaving a penny or | | | | and service there is a magic price that a customer will |
| two off the price we can avoid these alarm bells. A | | | | readily pay with almost no selling on your part. |
| person will wrinkle his brow and wonder if that fancy | | | | I won't even try to guess why, but for ebooks that |
| kitchen gadget is worth $20, but he will be franticly | | | | price appears to be $7. You have probably by now |
| dialing the phone credit card in hand for the low low | | | | seen the rash of $7 dollar ebooks everywhere. On |
| price of $19.95. What a bargain. | | | | marketing web sites and blogs and all over the web. |
| Believe it or not sales figures seem to support this | | | | For some unknown reason $5 is too low and 8$ is too |
| idea. Shave a few pennies off the round dollar amount | | | | high. |
| and people are more likely to buy from a TV ad, | | | | Does it really matter why? As marketers we don't |
| however this doesn't work in all forms of marketing. | | | | need to question why. We find what sells and stick |
| When buying in person people appear to prefer round | | | | with it until it doesn't sell anymore. |
| numbers. For instance. I have a friend who sells | | | | If the public will pay $7 without flinching who am I to |
| knockoff tennis shoes at flea markets. Don't laugh. He | | | | question them? |
| quit his regular job because he makes more in a | | | | Maybe it's because $5 is not a lot of money these |
| weekend at the flea market than he did in a 40 hour | | | | days. So if it cost $5 it must not be any good or it |
| week. | | | | would cost more. But then $10 is double digits. Hold on |
| Anyway he dicovered that the magic price for | | | | here $10, I could get two fast food lunches for that. |
| knockoff tennis shoes at a flea market is $20. Any | | | | Okay, I am guessing why, but the point is, $7 is the |
| more and buyers huff and go "I might as well go to the | | | | magic price for an ebook. Atleast for now it is. |