What Are The Odds In Binary Options

Honing in on the right pricing strategy for your business can be a struggle — one with a lot of factors to consider and plenty of options at your disposal.

In most cases, how you toll your products or services will be some combination of multiple concepts — ideally supported by some degree of competitive analysis and market research. Only those more overt considerations aren’t the but ones you should make. Some aspects of pricing are subtle enough to easily look over or take for granted.

One of those factors is the final number yous tack on to your prices, and elementary as that might sound, information technology’s yet significant. The implications of pricing your production at $99.99 instead of $100.00 extend way beyond the one-cent divergence between the ii.

That small distinction — known as odd-even pricing — can have a considerable impact on the image that your product, service, or brand projects.

Here, we’ll dig into the concept a fleck further, explore differences between odd and even pricing, accept a await at the right time and place for each strategy, and see some examples that illustrate both methods.

Though odd-fifty-fifty pricing strategies can be employed in well-nigh whatever industry, they’re most normally associated with retail and ecommerce. Odd pricing strategies are more than common than even ones, but that doesn’t hateful your visitor should assume that kind of pricing by default.

Pinning downward the strategy works for you volition residue on the nature of your business and the clientele you’re hoping to appeal to. Allow’due south accept an in-depth await at both options to help you gauge which choice suits you best.

Odd Pricing

Odd pricing is structured to give buyers the hidden impression that your product is being sold at a discount. The psychology backside the exercise hinges upon the particular attention consumers pay to the first number of a price. That initial number tends to frame a consumer’s perception of a product’s value more than the toll every bit a whole.

For case, when a product is priced at $9.99 as opposed to $10.00, nearly consumers are subconsciously inclined to run across the initial “nine” every bit existence more meaning than the “0.99” that follows information technology — creating the impression of value.

Leveraging odd pricing is a relatively elementary, still-effective manner to sway consumers into believing you’re offer a bargain. Then if your company is interested in attracting value-conscious consumers and demonstrating price sensibility, consider employing odd pricing.

Fifty-fifty Pricing

Even pricing plays on the other side of that psychological token. If the price of $99.99 is perceived every bit a bargain, then the price of $100.00 has to be perceived as a premium by default.

That’due south why the strategy is used primarily by higher-end brands, looking to project premium quality. So if you’re trying to create that kind of brand identity, then information technology’s in your all-time interest to utilize an even pricing strategy.

Using Both

Though both strategies serve different purposes and are often used by dissimilar kinds of businesses, their applications aren’t mutually sectional. The two tin be effectively leveraged in tandem.

Some companies will use both strategies simultaneously to assist distinguish their premier options from lower-tier, sale, or clearance items. It’s a good option for versatile brands with a wide variety of offerings, looking to appeal to consumers with varying interests and budgets.

Examples of Odd-Even Pricing

Odd: Men’due south Wearhouse

Here, we have an example from the Men’southward Wearhouse clearance section. In this instance, the outlet is aggressively pushing deals for these particular sport coats. It’s less concerned with casting these coats as premium items and more with moving excess inventory at a bargain. So, the company opted to leverage odd pricing to stress that signal.

Epitome Source: Men’south Wearhouse

Fifty-fifty: Brooks Brothers

Brooks Brothers, a premium wear brand, is trying to project that reputation through its pricing strategy. These coats are being sold at full-cost to a consumer base that’s willing to ignore bargains in favor of what they believe to be higher quality. So the company leverages fifty-fifty pricing.

Image Source: Brooks Brothers

Odd: Mattress Business firm

This is a lower-tier pick available from mattress wholesaler Mattress Firm. The business is trying to appeal primarily to bargain shoppers with this particular product, so information technology opted to leverage odd pricing while promoting it.

Image Source: Mattress House

Even: Also Mattress Firm

Mattress Firm is an example of an outlet with a wide latitude of products and a diverse customer base of operations. Since it has that kind of range in terms of its offer and buyer budgets, it tin apply both odd and even pricing in tandem to project the bargains of its lower-tiered options and premium quality of its higher-tiered ones.

Epitome Source: Mattress Firm

Considering odd-even pricing is an attribute of your overall pricing strategy that can easily be glossed over. Deciding whether you’re better off charging $9.99 instead of $10.00 might seem inconsequential, only it can however have a meaning impact on how your brand is perceived and the kind of client you appeal to.

No matter the nature of your business organization, it’due south worth your time to give some serious thought to that last digit of your prices.

Originally published Aug 31, 2020 eight:00:00 AM, updated August 31 2020