Charm pricing is a pricing strategy that involves setting product prices that end in an odd number, such as five, seven, or nine. This pricing strategy creates the perception of a lower cost and can increase the appeal of products to customers. Studies have shown that brands using charm pricing show higher sales by almost 4% compared to using "rounded" price points.
Nike chooses to round all their products on sale to end with .97. As you can see in the product listings above, the Nike Invincible 2 is priced at $104.97 and the Jordan All-Star Weekend BC is priced at $41.97. This way, buyers will view the products to cost $104 and $41 respectively, perceiving them to cost lesser than they actually do and be more willing to buy.
Still considering if Charm Pricing is for your store? Just do it!
- Install Konigle to your Shopify store.
- Under improve conversions strategies, implement the ‘Use charm pricing techniques to set product prices’ tactic.
- 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.