Whole dollar pricing or odd number pricing?

Discussion in 'Lawn Mowing Equipment' started by crusty_crab80, Jul 10, 2014.

  1. crusty_crab80

    crusty_crab80 LawnSite Senior Member
    from Alaska
    Posts: 412

    Hello,

    Wondering if anyone here ever experimented with whole dollar vs. odd number pricing. And if you have done this how were the results?

    Example a $500 spring clean up.
    Odd pricing would be $495 or $490
    Whole dollar pricing would be job comes out to $495 so round up to $500 to make it easy.

    Thanks
     
  2. walkerway

    walkerway LawnSite Member
    Posts: 208

    I about always do odd number pricing, and it seems to work fairly good.
     
  3. easy-lift guy

    easy-lift guy LawnSite Gold Member
    Posts: 3,376

    incredible.
    easy-lift guy
     
  4. why isnt your price just your price. if it bills out to 397, isnt that your price? if the product you buy at the store is $17, do you want them to round it up to 20$ for you?
     
  5. easy-lift guy

    easy-lift guy LawnSite Gold Member
    Posts: 3,376

    It's called a Gimmick. Most customer just want there work done at a fair price and on time. Anything else is just a waste of the customers time and patience.
    easy-lift guy
     
  6. olajoe808

    olajoe808 LawnSite Member
    from Zone 5b
    Posts: 221

    few offer whole dollar pricing here. it's usually .95, .96 etc.. it's marketing. But I will add, that around here having high end equipment and being able to run a mower in a straight line are not strong selling points. If everybody were charging $50 aerations, all the next guy would have to do is offer theirs for 49.99 and the next for 49.98 and so on. it's price wars.

    It works out to a point but as you can see - if it's a scaled down operation - you may end up competing with kids, laid off workers, etc, that will drive the prices down so much you'll sink going head to head.

    Hard to believe this is as much of a surprise as it is. Consider grocery shopping where very few things are ever a whole dollar.

    I wonder if some of these posts are actually from people who might be overseas?
     
  7. PicturePerfectLawns

    PicturePerfectLawns LawnSite Gold Member
    Posts: 3,359


    I don't have much time because I have to get going this a.m. But I know exactly where your coming from. I come from a business family and know quite a bit about the pricing and marketing gimicks and tactics. I do it on all my advertisements and again, I may not be the biggest company, but I picked up 60+ customers in one year. If I'm charging $40.00, it gets rounded down to $39.95. Sounds better to the customer. It may only be .05 cents cheaper, but from research they say the customer associates that $39.95 with a cheaper cost then that $40.00. I honestly believe in it. Walmart Does it, Mc. Donalds does it, Home Depot does it, all the big companies do it and after I think about it, if I see the same product for $20.00 and one for $19.95, I'm going to buy the $19.95 because it sounds better although it's only .05 cents cheaper. I know where your coming from though just to chime in, and I think it does work.
     

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