2 Good Reasons for Simple Pricing

Lately several people have asked why we price our products in round numbers rather than with the now traditional 99 cent ending. There are 2 reasons.

First:
The use of the 99 cent ending was developed as a way to manipulate people into thinking that they are spending less. And it works, which is why everyone does it! It works effectively on me even when I’m fully conscious that I’m being manipulated. Even though I round up and add it up properly, the psychology works. And I hear it working when one of my kids says, “But Mom, it’s only $4.00…” when it’s really $4.99.

price tags

I hate being manipulated, conned or lied to. I’ve made a decision that I don’t want to do to others that which I dislike having done to me. So even though I’d love it if you would spend more at Herbaliz, this is one of several things that “everyone does” that we won’t do here.

Second:
The arithmetic is easier. If you are going to round $4.99 up to $5.00 anyway, why not start there?