$99 vs. $100....is there really a difference anymore?? | TruckMount Forums #1 Carpet Cleaning Forums

$99 vs. $100....is there really a difference anymore??

Todd the Cleaner

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Or $199 vs $200 or $299 vs $300.....you catch my drift. I did a job today for $99 and the customer laughed and said why not just make it $100.

I know it's supposedly a psychological thing but does it still work or are we better off just charging the extra dollar?
 

matt30577

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I think you're wasting your money on these types of advertising. From the results of my advertising, it's good to just make it a "cute reminder" that their carpet might have puppy pee on it, or toddler spills that need to be cleaned so their kids don't get sick
 

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I know Stanley Steemer is very successful at this type, but Rainbow and Service Master etc. also are very successful and they don't do the "$99" script.

Why would you want to look like SS anyway. What you want to do, is make your customer think of you when they see these SS commercials
 

Todd the Cleaner

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I know Stanley Steemer is very successful at this type, but Rainbow and Service Master etc. also are very successful and they don't do the "$99" script.

Why would you want to look like SS anyway. What you want to do, is make your customer think of you when they see these SS commercials
But even if we were saying $999 vs $1000, does that extra dollar make a difference in peoples perception of value or is that a thing of the past? Will more people take the $999 deal than the $1000 deal?
 

Steamin' Seaman

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It is pitiful to say, A dollar isn't worth a squat anymore.
Like pennies...roughly about 160 pennies for a lb. I get 2.00 a pound for copper at the scrap dealer. My dad says I gotta stop thinking like this!
 

Todd the Cleaner

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It is pitiful to say, A dollar isn't worth a squat anymore.
Like pennies...roughly about 160 pennies for a lb. I get 2.00 a pound for copper at the scrap dealer. My dad says I gotta stop thinking like this!
Hmmm.... get out the torch and melt down all my......better not I guess.
 

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But even if we were saying $999 vs $1000, does that extra dollar make a difference in peoples perception of value or is that a thing of the past? Will more people take the $999 deal than the $1000 deal?
I don't see the money being the reason for the advertising. It's just a way to remind the customers that it's time for them to call you
 

matt30577

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There's probably some "study" out there that the govt. has wasted money on, that shows the difference in the marketing of $99 vs. $100.

Just youtube it
 

Blacktiedetailing

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Or $199 vs $200 or $299 vs $300.....you catch my drift. I did a job today for $99 and the customer laughed and said why not just make it $100.

I know it's supposedly a psychological thing but does it still work or are we better off just charging the extra dollar?
You are no longer in the "Hack Category" once you move above the $99 charge. ;)
 
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Blacktiedetailing

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Or $199 vs $200 or $299 vs $300.....you catch my drift. I did a job today for $99 and the customer laughed and said why not just make it $100.

I know it's supposedly a psychological thing but does it still work or are we better off just charging the extra dollar?
Like Ive been telling you, move your min to $125 and up. I had a guy call me yesterday to do his 2 rooms and stairs. I told him $150 and he balked. I told him that was my min charge to drive to his place. If I was $89, it would of cost me an hour to drive their and back, 45 min to do the job and cost me probably $35. So for $50, forget it and it was in a condo… $150 and up for this guy...
 

without

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The appeal (perhaps mostly subconscious) of a difference is larger than the difference in price.

The appeal to clients is huge, you'd probably be doing yourself a huge disadvantage to start ignoring it.

Found this after a quick search, only thing I bothered to read up on this phenomenon as of now:
http://www.nytimes.com/2009/02/08/weekinreview/08arango.html?_r=0

Lot's of good points, different ones than I mentioned just above. (including a starting reference to Mad Men, I guess I should try to watch that show again)

...Professor Schindler, in a study at a women’s clothing retailer, found that the one-penny difference between prices ending in .99 and .00 had “a considerable effect on sales,” according to his study, with items whose prices ended at .99 outselling those ending at .00.

“The 79 cents sold better at 99, the 89 cents sold better at 99, and of course the $1.49 sold better at 99,” he said.
Kinda neat:
Then there is this explanation: that the advent of the cash register, invented in 1879 by a Dayton bar owner (according to the Museum of American Heritage), allowed merchants to thwart pilfering clerks by charging a penny less then a full dollar amount, thereby forcing cashiers to open the register to give change to a customer.
Ends with:
“It’s to make the price seem like it’s less.”

Any which way the data seems to skews towards 9's are better, if anything bump the $99 to $109.

Neat topic, but I'd try not to ever make drastic changes based on personal anecdotes. Your client might choose to ignore the fact, but he is more likely to spend with the 9 in the price. If anything it's just a nice talking point.
 
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without

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Like Ive been telling you, move your min to $125 and up. I had a guy call me yesterday to do his 2 rooms and stairs. I told him $150 and he balked. I told him that was my min charge to drive to his place. If I was $89, it would of cost me an hour to drive their and back, 45 min to do the job and cost me probably $35. So for $50, forget it and it was in a condo… $150 and up for this guy...

Maybe consider jumping it to $129, people perceive a larger difference than when ending with a 5 it seems.
 

Prosteam-sonomacounty

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But even if we were saying $999 vs $1000, does that extra dollar make a difference in peoples perception of value or is that a thing of the past? Will more people take the $999 deal than the $1000 deal?
I think you're missing Matt's point. Try advertising WITHOUT coupon (price) structured ads. In my experience, an ad that conveys the right brand of 'quality' , doesn't need to offer a specific price when placed in front of the proper prospect.
 

without

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I think you're missing Matt's point. Try advertising WITHOUT coupon (price) structured ads. IMO , an ad that conveys the right brand of 'quality' , doesn't need to offer a specific price when placed in front of the proper prospect.

I 100% agree with this.

I'm doing what's worked for me over the last couple years, which has been mainly advertising price points.

Getting to the point where referrals & repeats are adding up to what I'm bringing in with the price point ads so I will finally be switching over to more brand advertising like suggested.

I'm not sure what effect it'll have, but I'm willing to find out as soon as I can risk it.

I charge 3 areas for $147..
According to just a bit a research it appears you'd get a better response at $149.

From the article linked above:

Dave Gold also tried it. In the 1960s, he and his wife owned a liquor store in Southern California where they sold wine at various prices: 79 cents, 89 cents, 99 cents and $1.49.

“We always noticed that the 99 cents sold much better,” he recalled in an interview.

They priced all their wine at 99 cents, and overall sales improved.
 

Todd the Cleaner

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I think you're missing Matt's point. Try advertising WITHOUT coupon (price) structured ads. In my experience, an ad that conveys the right brand of 'quality' , doesn't need to offer a specific price when placed in front of the proper prospect.
Actually, I usually don't advertise price at all but I do have the 3 room special on my website. I was just wondering if people saw through the "9" now days or if it still works.
 

without

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Actually, I usually don't advertise price at all but I do have the 3 room special on my website. I was just wondering if people saw through the "9" now days or if it still works.
That sounds like a great compromise for me. Cut back on advertising the price points but keep one live on the website as a catch for a portion of the price shoppers.
 
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Bill Yeadon

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The price point in ending in 9 is a proven technique. Studies have been done showing that it does work.
PRICELESS is an advanced studies book on pricing practices, perfect for MBA students, product marketers, and entrepreneurs. The author, William Poundstone, draws from studies by renowned economists to dive deep into the psychophysics of money to explain how the “mundane act of naming a price ... turns out to be a surprisingly tricky process.”
 
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