1, 5 or eagle?

[Anjay]

I think this would go here. A mod can move it if he thinks differently.

To attract more clients, do you do 1, 5 or whole?
For example: when doing a degree in business management with marketing & finance, you learn about this - and are advised on certain things and learn how the mind works and so on.

Do you do a whole figure price, like $20, a $0.01 off like $19.99 or $0.05 off like $19.95?
I do $0.05 off as I feel and learnt that it usually gives the client a better reason to go with your company, as it's only $0.05 - and to the shop/host/whatever, it's really nothing, and the client doesn't think support or reliability can change between a few cents.
What do you think? What do you do?

I'm sure if you walk around your local super market, you'll find the same. It really varies in shops, although I found 98% of shops in England did £0.01 off, making it £4.99 rather than say £5. However, there were the odd shops who did £0.05 off.
Although one shop, whom always did whole numbers, was the £1 shop since all their items cost only £1.

But I'm curious - and of course it's another topic for people to post in!
*we need more topics!!*
So, what do you people do?

 

[JohnScott]

Studies show that consumers perceive $19.95 very differently from $20. Silly, but true.

One thing to consider when devising a pricing strategy is the message you want to convey. If you want to convey an image of high quality, don't just say so on your website - hike the prices.

http://www.internet-marketing-research.net/effect-of-price-brand.php

I think low prices often convey the wrong image, and deter consumers from buying.