Without further delay, below is a key finding from my first-ever DRTV Experiences survey ...
Question: "If you saw a product on TV that you wanted, which price would most motivate you to buy?"
The big red bar, representing 93 of 123 responses (or 75.6%), is for the answer: "For me, there is no real difference between the three." Apply the margin of error, and that means between 69% and 84% of DRTV buyers don't care if a product is $9.95, $9.99 or $10 -- at least not consciously.
Bottom line: If there really is no difference between the three price points, I'd go with $10. Besides liking the argument that $10 is easy for people to understand (it's a $10 bill), I know that extra four or five cents isn't trivial when multiplied by millions of units sold.
P.S. We also asked people why they chose their answer. Here are the representative answers for the 93 that didn't see a difference:
- "You're talking about a nickel and a penny here!"
- "This type of pricing is a gimmick. I prefer the straight $10 price."
- "If I feel the product is worth it, the price is not as important."
- "If I see a price such as $9.95, I usually round it to $10 anyway, so I see no real difference in these three prices."