Showerthoughts

29675 readers

1360 users here now

A "Showerthought" is a simple term used to describe the thoughts that pop into your head while you're doing everyday things like taking a shower, driving, or just daydreaming. A showerthought should offer a unique perspective on an ordinary part of life.

Rules

All posts must be showerthoughts
The entire showerthought must be in the title
Avoid politics
1. NEW RULE as of 5 Nov 2024, trying it out
2. Political posts often end up being circle jerks (not offering unique perspective) or enflaming (too much work for mods).
3. Try c/politicaldiscussion, volunteer as a mod here, or start your own community.
Posts must be original/unique
Adhere to Lemmy's Code of Conduct-----

founded 1 year ago

MODERATORS

vatlark@lemmy.world

forkball@lemmy.world

quinten@lemmy.world

Thekingoflorda@lemmy.world

159

People live their whole lives watching corporations end prices with 99 yet when they list their own items for sale they choose a whole round number and never question it. (lemmy.world)

submitted 9 months ago* (last edited 9 months ago) by sparkitz@lemmy.world to c/showerthoughts@lemmy.world

74 comments fedilink hide all child comments

"...the average person treats a price ending in .99 as if it were 15 to 20 cents lower."

The tendency is called left-digit bias, when the leftmost digit of a number disproportionately influences decision-making. In this case, even though the real difference is only a penny, research shows that, to the average person, $4.99 seems 15 to 20 cents cheaper than $5.00 -- which results in selling 3 to 5 percent more units than at a price of $5.00"

Why Literally (Almost) Every Price Ends in 99 Cents

https://en.wikipedia.org/wiki/Psychological_pricing

EDIT: The left-digit bias is not just pennies / cents. It applies when going from $99 to $100…$399 to $400…$999 to $1000 etc.

EDIT 2: If you have a car for sale and you want $10,000 for it are you listing it for $10,000 or $9995?

you are viewing a single comment's thread
view the rest of the comments

[–] sparkitz@lemmy.world 6 points 9 months ago (1 children)

I understand. But what if you're selling a refrigerator or laptop for $400? You could list it for $399 or $395. The left-digit bias is not just pennies / cents. It applies when going from $99 to $100…$399 to $400…$999 to $1000 etc.

[–] themeatbridge@lemmy.world 18 points 9 months ago* (last edited 9 months ago)

Then I want $400. Like I said, I onlyhave to sell it once. I don't need to sell it to more than one person.

And if I saw someone selling a refrigerator for $399, personally it would make me doubt their trustworthiness.

The left digit bias is real over large groups of people. You're going to sell more laptops at $399 because of left digit bias, but it doesn't make a discernable difference when you're only selling one. And again, then I have to deal with making change. Somebody's going to hand me four hundred dollar bills, and I'm going to dig into my pocket for a crumpled single? Or maybe three quarters, two dimes, and a nickel?