Prices Ending in ".99" Convert Better

Their findings?

Prices ending in ".99" had noticeably better conversion rates — as much as +117% better in one case.

Gumroad said:

"Across the board, prices ending in .99 have higher conversion rates than prices ending in one cent higher."

Here’s Gumroad’s comparison table from their write-up displaying the results of their analysis:

Are you an app developer selling in the App Store? Or maybe you’re working on a premium icon set, WordPress theme or e-book to bolster your income. This info might help you come up with a good price.

Read the entire report and their theory on why prices ending ".99" convert better in the Gumroad blog post called A Penny Saved: Psychological Pricing.

  • This is because people don’t actually read the whole number, they only process the first set of significant digits. It’s why we price everything $.99. You write 1.99 which is almost 2, but really people only see the 1. Very few think hard enough on the price to round up in their head “Oh, 2$ okay”.

    http://en.wikipedia.org/wiki/Anchoring

    and also a good list: http://en.wikipedia.org/wiki/List_of_cognitive_biases

  • Interesting reason!

  • What about conversion comparison on .99 and .90 prices?
    Do we have any results?

  • Sydney Miles

    Interesting strategy! How about “bundle” pricing? This seems to work out fine, too! Like: 3 for 100; or 7 for 100; It is easier to shell out 100 rather than do divisions!!Pricing products so that when the buyer tries to calculate the item per piece it would be mentally difficult to calculate, with remainders to round off!!so, (me, the buyer)I’d probably say: ok, here’s the hundred, keep the change! ha-ha! Cheers!

  • Daniel Licht

    I’d like to see a study with higher dollar amounts e.g. $149 vs. $149.99