In the Internet marketing world, people have become used to prices ending in 7, ie. $7, $17, $27, $47, $67, $97 - all the way up to $997 (or $4997 if you like!)

People who have taken the trouble to actually test their results have had contradictory results - this is a short report by Tim Gross: http://www.internetmarketingcourse.c...pickaprice.pdf

I'm not sure that that example is entirely valid, as Tim allows customers to choose the price they're willing to pay. However, it does indicate that pricing choices are not as cut and dried as most people believe.

Tim basically concludes that the most profitable price for his $39.97 product (for the purposes of the test) is $10. But he's not comparing it with, say, $9.97.

James Brausch maintains that the most profitable prices are made up of the following digits: 0,1,3 and 5. So the best prices to test would be: $1, $3, $5, %10, $13, $15, $30, $35, $50 and so on.

I think the key is testing. Pricing expectations differ from market to market - it's shortsighted to make assumptions about your pricing strategy.

Derrick Markotter
www.targetedleads.co.za