Winning Bizness Desk
Mumbai. Many companies strive to attract customers through sales, offers and discounts. Seeing the price of the products in these sales, it must have come to your mind that why companies keep the price of their product in the figure like 99, 499, 999 and when the company decides the price, instead of keeping it 99 or 999. Why not keep 100 or 1000 rupees? Let us know why companies do this.
This is a psychological pricing strategy
Even if you think that when the price was kept at Rs 99 or 999, they would have increased by Rs 1, but companies do this following psychological pricing strategy. Actually, whenever you see the price of a product in the figure of 9, then you find it low. For example, if the price of a product is Rs 499, then you will find this price close to 400 at a glance, not 500. Through psychological pricing strategy, companies attract the attention of customers to their products.
Various research also support this
An experiment was also done by the University of Chicago and MIT on the psychological pricing strategy. Under this, he put the price of women's clothing in the categories of $ 34, $ 39 and $ 44. He was also surprised to see that the clothes sold the most, which were priced at $ 39. Although every company keeps this strategy for its product, but it is mostly used during the sale.
That one rupee makes extra income!
There are many people who buy goods from a shop or store and if their bill is made in 9 digits (eg 999, 499, 1999) then they do not take Re 1 back. Many times it is said on behalf of the shopkeeper himself that he does not have the change. While paying in cash many people think about what to bother for 1 rupee and give it up. If the shop is small then this money goes into the pocket of the shop owner, that too without coming under the tax net. On the other hand, if it is a matter of a big showroom or store, then the remaining 1 rupee goes into the pocket of the staff i.e. the person at the cash counter, because he has to pay only the billed money. The purpose of keeping things less than Re 1 was never to return Re 1 but this is how it is being used a lot.
