This has been one of my biggest pet peeves since I’d say, the turn of the Century.
A product is sold for $9.95 or $9.99. A professional service is offered by an MBA Graduate for $795.00
Please don’t insult my intelligence!
Just make it $10 or make it $800 for friggen sake!
Why on earth are you even bother doing your accounting in ridiculous numbers such as these instead of working in whole rounded numbers?
Why aren’t you standing proud next to your product or service and (gasp) charging that whopping 5c more or that whopping penny more or (louder gasp) - a whole $5 more.
If 1c or 5c or $5 is really making or breaking the purchase of that consumer, then they aren’t going to buy from you anyway. In fact, they shouldn’t even be in your target market if they are that penny pinched. If your target market consumer is so desperate to save 1c or 5c, my gosh, how dare you tempt them with a product they probably don’t need and entice them to spend when it’s clear they can’t afford. What are you contributing back to society here except ongoing debt or struggling times. Some backwards corporate Social Contribution strategy you have there, Mr. business person.
So, I want all those that charge these insulting prices to stand up and acknowledge yourself. That’s it - be bold. Raise your hand high. Don’t be a coward now - stand proud behind your ridiculous pricing. Be willing to show your face to all those consumers you think you are ‘tricking’ buy doing this ‘psychology pricing’.
For those that don’t know what psychology pricing is, it’s being able to say some cheesy statement in your advertising message such as: “For less than $10 you can have xxxx” That’s right ,for $9.99 it’s all yours!”
The consumer then thinks that they are saving a lot because it’s “under $10″. This is the oldest trick in the book and frankly it just doesn’t work anymore.
Consumers are smarter now. We are more intelligent individuals overall and we are smarter shoppers - both thanks to the proliferation of the internet and the vast amount of knowledge for free you can learn on it. Additionally, I, for one, am tired of seeing these $9.95 or $9.99 pricetags endlessly for decades.
Generations are smarter now as less is kept in the dark about how business works, politics work, life works - due to the explosive demand of transparency. This pyschology price tag practice might have not been so obvious years ago, but it’s now boldlytransparent. And I have got to tell you, as a consumer - it doesn’t fly anymore. In fact, it deems you as less desirable in my eyes -and it crosses an ethical line with me.
So here’s what happens when I see that type of pricing - even with the MBA experienced business service for $795 (which offers a phenomenal service….such a shame). I look the other way. Yep, ya just lost me as a potential customer or client. Simply because I am aware of this tactic and I am not here to make you ‘feel good’ about the ‘bargain’ you think you are giving me, when you know it is absolutely no bargain at all. You know this is not what business professionals call a ‘pricing strategy’. This is all about psychology.
A bargain to me is if something is really supposed to be $10 and you make it $9.50. That shows class a bit more, not my ideal bargain of course (like $9.00 would be)
but it shows you aren’t insulting my intelligence and you are still trying to keep it under $10. I’d gladly pay you the 50c more vs the one penny more simply because you respected me as an individual and you respected me as your client/customer. You related to my intelligent world - you related to your consumer.So how does all this cross the line of ethics? It crosses the lines of ethics with me because it is abuse of power by a business over a consumer.
Ethics as it relates to business or the course of business, does not require the consumer to have actually engaged in the business for the ethics violation to happen. It can be the mere suggestion or the impression that business makes to the consumer standing alone (ex: advertisement). This is my point of view on it, and from my study of ethics in business and prelaw college classes.
Another reason I won’t buy from you is because you think it’s a smarter business move for you to try to trick me, then to gain me as a loyal customer and ask me for 1 penny or 5c or $5 more. You put lot of time and energy in trying to cheapen me, vs raising me up and commending & honoring my intelligence, and putting the time and energy into enticing me and keeping me as a customer. You put all your energy into the wrong ‘pricing strategy’.
There is a reason Nordstrom doesn’t price items for $29.99. And even if they do reduce items, they do it respectfully and with class. You don’t see red pen ink on price tags with $25.99. Instead you see a red ink on a tag as $25-. They make it easy for their client in the store, when they are thinking about the purchase, when they are at the counter purchasing (say they pay with cash) and when they are at home balancing their checkbook - they aren’t working with change, it’s all simple, whole numbers - don’t even need a calculator (I round up in my check book anyway, but some are meticulous and want receipts to match exactly in the checkbook).
Even if I did purchase with you because of a necessity - it would be a one off, and just in case you weren’t aware - as it seems your tactics are quite outdated a Century or so - one-off companies will not survive in the 21st Century. They are being squashed daily as the global business community is having intelligent conversations with their prospects and creating trusted and valued long term relationships.
So even after reading this if you still insist on going about your immature business practices - be my guest. You know I won’t be in your database, and worse, I won’t be a fan, I will be a critic. Even worse, I have now exposed your Dirty Little Secret.
But in being an advocate for the rest of the population that is to scared to say no to you and really believes in your ‘bargain’, so much that they are still willing to give you their hard earned money, my one simple request is this:
PLEASE at least stop with the $9.99, $12.99 or the $55.99, etc. My gosh, a penny isn’t even worth anything today except an old fashion toss in a fountain or lake with a wish! So at the bare minimum, please at least raise the bar slightly on what you consider your prospect’s intelligence and add a dash of respect to it while your at it.
Ps: If you really don’t need that extra penny or 5c or $5 - well, then change your Corporate Social Contribution strategy to a sensible one - and donate all those pennies to a good cause or charity! I have a few listed on my home page in case your not sure where it should go:)
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