Apple seems to have now ended up with some very strange prices following the rise of VAT back to 17.5%. Is it just me or does the base Mac Mini at £510 not ring quite as well as £499? I think they're shooting themselves in the foot a bit as they are missing out on the psychological 99p pricing. Do you think all of the prices will be readjusted at the next product release, or will they stay as they are until each and every product is individually updated?
Apple buyers rarely look at the price tag anyway....
MaddAussie (01-01-2010),shadowmaster (01-01-2010),Terbinator (01-01-2010)
I'd imagine they will change them soon in January.
yep prices have gone up and i agree they are loosing out on the 99 psych pricing
to me it just shows that they never really put their prices down
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Wasn't there an article on the BBC a while ago that said the 99p psych thing didn't actually work?
Maybe so, but if there was I don't believe it.Originally Posted by Singh400
A friend of mine ran his own tests in his own stores. In some branches, for several months he rounded prices up, say £400 instead of £399.00. In other branches, he didn't. Turnover, if I remember accurately, dropped about 15% in those that had rounded.
He even had one customer drive about 40 miles to another branch and comment to the manager that they were "cheaper" than the main branch.
So he stopped rounding prices up, and turnover went back up.
This all came out when I asked him if he didn't feel that £399.99 for a £400 product wasn't just a tad insulting to customer's intelligence, and he then have me the figures.
His conclusion, and I have trouble faulting it or his logic, was "Yes, many people really are that stupid".
This was the article I was talking about, looks like it is a 50/50 split between it does and doesn't work. I personally do think it works on most shoppers.
I would doubt it even works on "most", but my friend's experience was that it worked on enough to be worth doing. Despite how ludicrous it seemed, it was hard for me to argue against what he said.
but i think its one of those things that you wont notice it unless you get asked. its more like in the back of your head, subconsciously you decide. i think if you asked anyone and when they have had some time to think about it then they would say that there is no difference.
its more apparent when its impulse buying i think. from my own experience in business, customers doesnt like round numbers. if you have round numbers they are almost always wanting you to give a discount. cuz they dont believe that your cost + margin + others will give you such a nice round number.
anyway this is what i thought
You may be right, mightmouse, but if people are sceptical about things always coming out at a round figure, it's not much of a leap to be equally sceptical about them always working out at £x.99p.
In fact, I'm more sceptical about the 99p thing, because I think it's an insult as well. The whole point of the 99p, to me, seems to be because it makes something at, say, £199.99 feel cheaper that something at £200 because it's "a hundred and something" rather than "two hundred", despite the difference being so small that most people wouldn't bother to stop and pick up a 1p coin if they saw it laying in the road.
That's why, personally, I feel insulted by the tactic. It makes me react "just how think do you think I am, not to see right through that?"
But I can't argue my friend's results and turnover drop, and the only conclusion I can reach is that enough people really are that thick, or it wouldn't work the way it did for him.
X-Factor, the Nazi's, Coldplay, Gordon Brown..... The list goes on.
throw new ArgumentException (String, String, Exception)
I wish more shops would just round up tbh. The amount of times I get a wallet full of pennies that I will inevitably stick in some jar for years on end is astronomical.
Congrats, you win! Godwin's Law
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