Geoffrey DeFilippi

Do you often find your self thinking that 24.99 is much cheaper than 25 dollars. I know I sure do. I find the lure of an item which is 1 cent less to be so appealing I am tempted to buy two.

So apparently according to business researcher this concept termed “Just Below” pricing actually works and works well. I guess I shouldn’t be so surpised, but I can help feeling insulted intellectually.

The concept is as follows:

• People don’t make rational purchasing decisions. - I guess I can “buy” that. Actually I’ll sell it to you for $1.99 if you would prefer.
• People go crazy for these deals or steals - After all you are saving a whole cent.
• What they really mean is that the price most people see when looking at a 1.99 price or 150.99 price is rounded down - I call that wishful thinking on the part of the shopper and lying on the part of the seller.

So it appears that the studies drive the industry pricing and since the studies are done on normal people who am I to argue.

That certainly doesn’t mean I have to like it and it doesn’t mean I personally will rush out and buy it.

I’m not advocating wholesale boycotts or anything either. All I trying to say in a round about way is “Wouldn’t it be more honest to sell me something for what its worth instead of trying to trick me into buying it because I’m getting a good deal?”