Odd-Evening Pricing Example
- A $20 item marked perceivably cheaper as $19.99
Deeper Insights Into Odd-Even Pricing
Odd-even pricing is a pyschological pricing strategy involving the last digit of a product or service price, in the belief that certain prices or price ranges appeal to a certain set of buyers. Instead of charging $20, charging $19.95 for a product makes the price appear to be in the "teen ranges" rather than the "twenty ranges." Thus, the customer perceives the price to be lower than it actually is. If buyers see odd numbered prices as bargains, that perception should play into the pricing strategy of those businesses aiming to be perceived as discounted retailers.
Odd pricing refers to a price ending in 1,3,5,7,9 just under a round number, such as $0.19, $2.47, or $64.93. Even pricing refers to a price ending in a whole number or in tenths, such as $0.20, $2.50, or $65.00.