discuss The last two digits of a price signal your desperation to sell

[Arpit131]

This might probably seem a little off-topic here. But I think it is very well connected to the domaining industry, indirectly if not directly.
Since we are all domainers here and we all deal with people, negotiate domain deals etc. on a daily basis, I think its very important to know the psychology behind buyers and sellers. This is one such topic!

The article explains the psychology behind the pricing as $99 instead of $100 or $999 instead of $1,000.
It also discusses, how pricing your products at $998 may bring a better counter offer than pricing it at $1,000.

Since we are into negotiation every now and then, over some domain or the other, it is better to know the psychology of the other person so that we may end up selling at a higher price and buying at the least possible price, just by knowing the desperation level of the buyer/seller to buy/sell.

The article is named "The last two digits of a price signal your desperation to sell" and can be on Discover Magazine here

Please share your feedback if you have had a similar experience or your views about the same.

 

[jamesosix]

I dont buy it (haha).

Shops, big shops, that are not desperate for custom do this. Its a given that 1.95 is more appealing than 2.0 when you're the buyer. I wouldnt say its a sign of desperation, its a sign that the business know that the attractive number, is just that...more attractive to buyers.

 

[Arpit131]

Yeah it does. And that is what is represented in the form of a research with a lot of data taken into account. Check out the article. You may find it interesting maybe!
There is a research paper associated with the same. It is named Cheap Talk!
You might like it!
Thanks for the honest feedback anyways.

 

[biggie]

for incoming inquiries/offers, i don't see the relevancy

going to always ask for a G, before i ask for $999

and that's the psychology of the seller who doesn't "have to sell".

for those looking to liquidate, sure they will always lower their prices.


but that's just common sense.

imo...

 

[indiegrind]

I tend to list set rate at a non round number.

789 instead of 800.

But when negotiating price, I go 0 at the end.

 

[mhdoc]

I know a house flipper who always prices his homes for sale to the penny. $119, 271.47 for example. His logic is that buyers think he must have some reason for such an exact number and don't try to change it.