Ever wondered why the price tag of everything, from merchandise to goods, says a rupee less than an exact even amount?
There’s a big money business running behind this price scheme.
What would you choose between two prices Rupee 9 and Rupee 10 for any product? You would choose 9. Not because you’ll have to pay less, but simply because you’ll not have to pay 10!!
Yeah right!! Though surprising, but that is how consumer psychology works. The whole business behind these 99 and 9.99 price tags is based on psychology.
The human brain always looks for better and easier options. It looks for whole or round numbers rather than decimal values. So, if a price tag says rupee 499, our brain automatically switches to 500.
Another reason for this is that, the 99 club gives the consumers the feeling that they are spending less. For example, when a person buys a T-shirt say, for 499, he would be satisfied with that he is paying less than 500. Whereas, the 1 rupee never comes back and what the consumer pays is always more than the original price. Or sometimes, it does come back. But not as money, but as a toffee. More or less, the consumer is always at loss.
And, there’s even proof to it. The famous dress study was the first real study to prove what marketers had known all along, that 99-ending prices work. This study showed that 9-ending prices earned 48% more revenue, even when the price was higher.
This single rupee, or even a few paisa is the source of huge profits to the sellers. Millions of rupees are swindled in this process in a single day. In a way, the consumers are being made a fool of and looted, without them being known.
The biggest benefit to the sellers is the ease with which they are able to accomplish their goals. And all this is happening due to the lack of awareness and knowledge. Some people even pay a rupee more like a tip in a restaurant, unaware that it was a bait they fell for.
But what’s the solution? Is there any solution at all?
Well, it is there!
- The easiest solution is plastic money!! Use your credit or debit cards for purchases at Walmart or any where you shop. Swipe your card and pay the exact amount you’ve been asked for.
- Do refuse the toffee that they give you in exchange of your rupee. And if you’ve accepted one, the next time you go to the same shop, give that toffee in exchange for the goods and see their expressions change!
- Avoid sending children to buy anything. They are easily pursued into buying something more with the money left behind.
Don’t let those shopkeepers fool you with your own money. The next time you visit any shop, ask the shopkeepers to return the money and enjoy their reaction.
Aware people about what you know now. Don’t let them be fooled either. What’s done is done! But what’s left can still be saved. Hope you do not fall into the trap again!