Have you ever walked into a store like Walmart and wondered why just about everything is priced ending in .99 instead of rounding up to the nearest dollar?
Of course, you have. It’s a strategy known as psychological pricing.
To most consumers, an item priced at $2.99 is more appealing than an item priced at $3.00. Even though there’s just a one cent difference, the brain processes them as much different values, and perceives $2.99 as the better deal.
A similar strategy has been used in the real estate industry for decades.
Why price a home at $500,000 when you can price it at a more attractive number like $499,900, or even $499,999, and potentially generate more interest from buyers?
But we’re not selling toothpaste here. Continue reading