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why are as-seen-on-tv products always sold for 9.95 or 19.95?

whenever an infomercial comes on, the price is always either $9.95 or $19.95
Why not 6.45 or 14.68?

Is there a set price for all companies to sell their products?

Asked by:BFMVfan1993

  • formerflyer posted: 28 Oct at 9:30 am

    The .95 is a way of adding nearly a dollar to the price without it sounding like it. Same reason gas stations charge 2.45.9 cents. The .9 cents give them a price of nearly 2.46 but it seems like 2.45. Houses are priced with figures ending in 900, such as 149,900, which sounds like 149,000 but is a lot closer to 150,000.

  • Daniel posted: 31 Oct at 4:34 am

    Oddly enough, that’s an excellent question! The answer is in the psychology of sales.

    Basically, we humans have been subconsciously programmed to associate even numbers with quality, and odd ones with value. In other words, a pad that costs $9.98 is better quality but worse value than one sold for $9.95, despite the mere difference of 3 cents.

    Also, we tend to psychologically ignore the approximation of the first numbers. In other words, $9.95 is perceived as being significantly cheaper than $10.00. Similarly, $19.95 much less than $20. These are considered “magic prices” of sorts, in that they are as close as you can get to the next price bracket before we are triggered to see the product as being there.

    Another trick you’ll see from time to time is “on sale for $19.99″ on a product that’s usually $20-something. Once again, the .99 cents means you’re getting a deal, and by changing that dollar amount to something in the teens-range instead of twenties, it indicates a “bigger deal” than if it were just one cent cheaper.

    Hope that answers your question!

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