Why is the price usually listed in odd numbers?

If you pay attention, you will see that most of the product's price will be listed in odd numbers, for example 99 thousand, 149 thousand, 990 thousand or $ 1.99 and $ 399. So, why is there such a hassle-free retail pricing? It's actually an art of pricing that has been sold for hundreds of years.

Psychological prices

Logically, we read from left to right so when we see the figure of 199,000 VND or 399 USD, our mentality will automatically be fooled that "this item costs a few hundred / this dish is three hundred something dollar ". Although "a few hundred thousand and a few hundred dollars" that way 200 thousand / 400 dollars only 1,000 VND / 1 dollars only.

In commodity pricing, the item that costs "three hundred dollars" ($ 300 - $ 399) will be in a completely different price segment than the item "four hundred dollars" ($ 400 - $ 499). Thus, although the price of $ 399 is only $ 400 less than $ 1, it is in two different price segments. Of course, the item priced at $ 399 / "three hundred dollars a few" will make sense to the buyer that it is much cheaper than the "four hundred dollars" , which helps the company to sell more goods.

Create a discount promotion effect

Discount promotion is the best way to sell, so selling prices in odd numbers will give customers the feeling that the item is being sold off sharply, for example, discounting the item from 210 thousand to 199 thousand, which means is the word "two hundred and a few" down to "one hundred and a few" , which sounds like a hundred thousand reduction, but actually only 11 thousand.

Who sells cheaper, he wins

For consumer goods and necessities, whoever sells them at a cheaper price will win. Therefore, with the same package of two shrimp and shrimp noodles, the seller will sell 3,200 VND / pack, which will certainly sell better than the seller of 3,500 VND / package.

Psychology deleted, let through

In the 2000s when I was a student, I heard my friend who worked as a clothing vendor in Saigon supermarket (the intersection of 3/2 - Thanh Thai) talked about this and still feels right now. It explains why the clothes are listed at retail prices of 99k, 149k and 199k but why not even numbers 100k - 150k - 200k because in fact few people need to return 1k. It said when charging customers: "This shirt of 99 thousand, but I am running out of 1000 change, I sent her a plastic bag to put the shirt on neatly, thank you". Thanks to that flexibility and quickness, few of its customers want to receive back VND 1,000.

Easy to sell by combo

Retail pricing is a great way to sell more goods by putting together a combo of 3, 5, and 10 items. For example, last month you go to the supermarket to see that people sell a lot of cloth masks to replace medical masks are scarce. A pack of 3 cloth masks costs 35 thousand VND, when buying a combo of 3 packages, the price is only 99 thousand VND, calculated as a discount of only 6 thousand for 3 packages but the sale size is very good.

Discount slippage

Why does retail pricing contribute to price slumps? You don't hear it wrong. In countries where there is less habit of using change of less than VND 5,000, like Vietnam, the psychology of the buyer prefers rounded items costing VND 5,000 or VND 10,000, gradually people lose the habit of using change. face value of 1 thousand 2 thousand, even 500 VND and this contributes to creating a slippage of goods, because now holding 2 thousand dong almost does not buy anything.

Thanks to the pricing of odd-number items to 99 thousand - 199 thousand, it will create a habit for buyers to keep the change of VND 1,000, for every 10 times of VND 1,000, you will have 10 thousand and buy a few things. small value.

Make a habit of keeping change

If you often go to the supermarket, you will find many items are priced at several hundred retail, for example a pack of noodles for 3,200 VND or a candy for 5,700 VND. Normally, no one has a change of less than 1 thousand dong (VND 200 - VND 500) in the pocket, but if you buy 5 packs of noodles, when calculating the price, it will be 16 thousand, easier to pay. As I said above, if you keep the change of VND 1,000, you will have an extra change when paying 16,000 VND, instead of giving 20 thousand for people to change. Even if you keep a small change of 200 VND in a bag, you can buy 1 package (currently supermarkets still change the change of 200 VND and 500 VND for customers).

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