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$100? Why Not $99.99?

Yes, I know. My bachelor’s degree is in applied business. I’ve studied the psychology of pricing. I know that $99.99 looks substantively less expensive than $100.00. Consequently, I’ve been asked more than once why I set the Blogger Package price at $100 instead of the more attractive penny less. And I’ve had business folks recommend a price change.

Well, here’s the deal. I just don’t feel comfortable using manipulative magic numbers to snag clients. If you’re paying $99.99, for all intents and purposes you are paying $100. If you don’t feel comfortable spending $100 for all these benefits, then you shouldn’t be spending $99.99 either.

But check out some other web site starter packages, like the one at robotforce.com. $100 is looking like a steal, isn’t it?

Of course, drawing the pricing line can turn into a haystack fallacy argument. But what you need to know is that I’m offering a package that costs $100, but is worth a heck of a lot more. And remember during our startup promo it’s only $90 (or should that be $89.99?)!

I’d love to help you start blogging in 1 week. And you have my commitment to deal with you honestly in providing a valuable service.

{ 5 comments… add one }
  • ileane December 11, 2009, 5:44 am

    Hi Alison,

    I need to know more about this offer. Here’s what I need on top of what I see:
    5 email accounts
    extra domain names for redirects from “eileen”, ” ilene” etc.

    Can you help?

  • Alison Moore Smith December 14, 2009, 10:09 am

    Hello ileane:

    I can add and redirect any extra domains you desire for $10 each. And I’ll throw in all 5 additional email accounts for $10. πŸ™‚ Let me know how I can help.

  • Tim Ryan August 17, 2011, 12:02 pm

    This pricing strategy is most commonly adapted as a discount. It may be considered as a weak application of psychology but somehow, it works effectively. Probably consumers really don’t mind the pricing at all, but the fact that there is a discount is what lures them to buying the product.

  • Alison Moore Smith August 17, 2011, 12:50 pm

    True, Tim. I’ve studied the psychology if it all, I just don’t like manipulating clients for a sale. Practically speaking, the price is $100. I want my clients to think the package is worth the real price, not just feel good about an imagined deal. πŸ™‚

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