Topic: 24.95 vs 25 (Price continuation)
Started by: Dav
Started on: 3/18/2002
Board: Publishing
On 3/18/2002 at 5:09am, Dav wrote:
24.95 vs 25 (Price continuation)
Note: This is a continuation of "Price Setting..." Thread in thhis here forum. There is no attached link because I am lazy... suck me.
Bailey;
I agree that X.95 is equal to X+1 to 99% (or some reasonably high enough number that it makes no difference to the average consumer). However, I have noticed that many people quote prices to me in round dollars. For instance, just last night I asked someone how much some over-priced WotC book was (some Forgotten Worlds thing), and he responded "Twenty-nine dollars".
When I actually glanced at the price tag on the back, it read "$29.95" Adding in the ever-present tax (8.75% in this area), you look at near-$32.50 in cost. I don't know about you, but that is a bit different from 29. When I quote price, I tend to include the bite (because you are paying for it) as well as stated cost, in a round term.
I feel that most people operate my way. Often, I make such an assumption only to be proven completely wrong.
In the end, I feel that the $5 break-range is a good trend to set at. The reason we priced Obsidian at $28 was so that with 7% tax (which was national average at the time), the cost came to roughly $30 even. While I feel this is pricing to the highest bracket of the audience, I feel it is relevant.
Therefore, I ask you, if 29.95 is the same as 30, why do neither prices take taxation into account on the reflected price? Would it be better to adjust for average sales tax, or is that too far? In the end, then, why price on the round dollar, but not account for the fact that they still have to fish for more bills because the price jumped beyond the $5 break point after-tax?
I don't have the answer, of course, which is why I pose the question.
Dav
On 3/18/2002 at 2:40pm, quozl wrote:
Two reasons
One: Everyone already knows they're going to be paying a couple more dollars in tax (but really aren't sure how much since most people can't do math in their heads). Also, you advertise the before tax price and that is what people will use to compare with other products.
Two: I buy my rpg's in Oregon, one of the few places left in the world where there is no sales tax. (It also has no self-service gas stations--it's a weird state.)
---Jon
No taxation without representation!