There was an interesting article in the WSJ that said the following when setting prices, based on a recent study:

1. Round numbers signal prestige, while precise numbers suggest a bargain
2. Buyers anchor off the first digit, so $3,999 seems far cheaper than $4,000
3. If you cut your asking price, make it easy to calculate the discount

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www.smallbusinessforum.com

Here are a few tips to help with pricing:

Do...
1. Know what the market ranges are for the products you produce. What are the lows and highs during the season for sellers in your market area?
2. Adjust your prices frequently to reflect reality.
3. Calculate Break-even Costs to determine how many units you’ll need to sell.
4. Be honest, fair, and ethical in your pricing strategies.
5. Set your prices as though your livelihood depends on it-even it doesn’t.

Don‘t...
1. Undercut prices to gain customers.
2. Sell substandard product at premium prices.
3. Rely on catalog or supermarket prices as a guide for you. They generally reflect volume discounting that you probably can’t afford to offer.
4. Apologize for your price or your product (if it’s not good enough to sell, then don’t sell it).
5. Give away food free just to get rid of it (if you have more than you can use then donate it to a local food pantry). When you give food away you send a message that food has no value.

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Online Degree For All

#2 & #3 make sense, but #1 is interesting I have never heard that before

I agree I have never heard that before, I wonder what they are basing their research on

Absolutely on ending prices with .99 or even .97. This is a mental game, as I have read a lot about it. You also clearly need to make sure that your product will bear the price point of what you are offering to sell it for.

Robert

It is amazing by taking a few cents off of the price what a difference it makes.