Question for developers on price

[rdrr]

Does everything have a price that ends in .99? Can't there be an application priced at $2.50?

[DipDog3]

Yes. No.

[MacMuttonchops]

Does anyone know the reasoning behind this? I've never understood why we get so close to the next whole dollar. Is this some psychological effect? "Three easy payments of $14.99 sounds much better than $15"? :confused:

[iVoid]

Does anyone know the reasoning behind this? I've never understood why we get so close to the next whole dollar. Is this some psychological effect? "Three easy payments of $14.99 sounds much better than $15"? :confused:

Yes, it's to lure in the suckers who think $15 is too much, but for $14.99 I'll give it a try.

[DreamPod]

It's an outdated concept that Apple is forcing on developers. Sure, in the 70's $9.99 may have seemed significantly cheaper than $10. But nowadays, I'd bet more people automatically round up in their head, and if anything think of it as more expensive because of all the nines.

Developers unfortunately can't choose a price, but instead a "price level" for their app, and Apple is the one choosing the price in each country for that level.

[Niiro13]

I think this is just common among all other prices.

If you think about it, why are most other products in stores and stuff ending in a .99?

If I remember correctly, it used to be flat costs like $10. Managers would carry change in case someone did not have exact amount. But in this case, employees could pocket the money if someone had the exact amount.

So managers made it so that the price was .99 making it so that the employees every time had to go to the managers, preventing a lot of the thieving.

Course that's just what I heard.

[Julien]

It's an outdated concept that Apple is forcing on developers. Sure, in the 70's $9.99 may have seemed significantly cheaper than $10. But nowadays, I'd bet more people automatically round up in their head, and if anything think of it as more expensive because of all the nines...
This concept still works as well as it always has. Don't believe it ask anyone the price of gas you will ALWAYS be quoted .9¢ less than it actually is.

[Greencardman]

Yep, unconscious marketing trick. Still works, always will.

[DreamPod]

This concept still works as well as it always has. Don't believe it ask anyone the price of gas you will ALWAYS be quoted .9¢ less than it actually is.

I disagree, nobody ever thinks of something that's $9.99 as less than $10 anymore. Especially with taxes and everything, pretty much everyone will see "$9.99" and think "a bit over $10". And gas is different, because they put big bright changable numbers showing the price, and then there's a little "9/10" next-to it built into the sign. Most people don't even see that, or their mind discounts it because it's built-into the sign, and they are looking for the changed number. So gas stations are hiding the amount, you can be sure if they had that "9/10" in the same font/size/changable number style as the rest (as $9.99 is usually written), people would consider it part of the price.

[Julien]

I disagree, nobody ever thinks of something that's $9.99 as less than $10 anymore...

You may disagree if you wish but millions of hours/dollars of marketing research and 100's of billions of dollars of actual sells supports the .99 concept. If it didn't help to drive sells up over the costs of the program the practice would be abandoned. As they say proof is in the pudding and in this case there is a LOT of pudding.

[stevearm]

Yep, unconscious marketing trick. Still works, always will.

Agree

[plumbingandtech]

You may disagree if you wish but millions of hours/dollars of marketing research and 100's of billions of dollars of actual sells supports the .99 concept. If it didn't help to drive sells up over the costs of the program the practice would be abandoned. As they say proof is in the pudding and in this case there is a LOT of pudding.

Best post of the thread.

[MacMuttonchops]

Thanks guys. You all basically confirmed my thoughts. These are the things I thought about as a child going to the supermarket with my mom.

[Small White Car]

I disagree, nobody ever thinks of something that's $9.99 as less than $10 anymore. Especially with taxes and everything, pretty much everyone will see "$9.99" and think "a bit over $10.

This reminds me of those people who say "I don't know why Coke runs ads on TV. It's never made ME want to go out and buy a Coke! They should save their money!"

Well, good for you. You're special. That doesn't mean Apple or Coke or Disney or whatever should just ignore the majority of the market out there and just market to you.

They're going to do what works on the most people.

[TimothyB]

This reminds me of a quote from Futurama:

Hermes Conrad: I order you to dispose of that toxic waste properly or bribe me. Either way, it'll cost you $500.

Bender: 500 real dollars? That's an outrage! Professor, I can dispose of this toxic waste for only $499 and one hundred cents.

Prof. Hubert J. Farnsworth: Hmm, I know that's a rip, but I'll pay for the convenience.