Lego psychological pricing

Lego psychological pricing
Rahim Hasan Mahmud

Rahim Hasan Mahmud

May 9 2023

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Using "charm pricing" can boost sales by an average of 4%. This involves using figures that end in an odd number, like five, seven, or nine. Installing a tool like Konigle to your Shopify store allows you

A study of 1.5 million online stores has found that using "charm pricing" can boost sales by an average of 4% compared to using “rounded” price points. Charm pricing involves using figures that end in an odd number, like five, seven, or nine, which are believed to sell better than other numbers.

Charm Pricing being implemented on lego.com
Charm Pricing being implemented on lego.com

LEGO prices their products to end with 9. As you can see in the examples above, the Big Bird Key Chain is priced at $4.79 and the LEGO City Town Map is priced at $15.99. This way, consumers will take the products to cost $4 and $15 respectively, perceiving them to be cheaper than they actually are and become more willing to make purchases.

Implement this tactic within 5 minutes to your store:

  1. Install Konigle to your Shopify store.
  2. Under improve conversions strategies, implement the ‘Use charm pricing techniques to set product prices’ tactic.
  3. Enable charm pricing with the Charm Pricing tool. Choose to price your products to end with .99, .95, 0, etc. and Konigle will automatically apply charm pricing across your whole store for both old and any new products you add in the future.
Rahim Hasan Mahmud

Author

Rahim Hasan Mahmud

Mr Mahmud, is a pricing zealot,  studying customer behaviour and pricing strategies to provide insights and recommendations to help online stores optimize their pricing and increase profitability.