A $39 dress outsold the same dress at $34. Eric Anderson and Duncan Simester ran this with a women's clothing catalog, published in Quantitative Marketing and Economics in 2003. The catalog mailed three versions to random groups of customers. Four dresses, each at its usual $9 ending, $5 higher, or $5 lower. At $39 that dress sold 21. At $34 it sold 16. At $44, 17. Across all four, the $9 prices sold 66 units, vs 46 for the cheaper versions and 45 for the pricier ones. The part that matters for small makers is in the follow-up tests. The effect was stronger on new items than on ones customers had seen in older catalogs, and seemed weaker when a "Sale" tag was already doing the talking. So if your launch-week instinct is to knock $5 off, try the price ending first. A new product nobody has a reference price for is exactly where it worked best. https://lnkd.in/enXRthDq
