Retailers strive exclusively for new customers at their own peril. Over time, which better impacts your company: a steady stream of new, but unengaged customers? Or a group of loyal customers who will return again and again to order your products?
The next time you find yourself in a retail setting, take a close look at the listed prices. You'll quickly observe that most items end with 49 or 99 cents. Sure, you get an extra penny out of the deal, but what's the point? Wouldn't it be easier for retailers to skip the hassle and assign a nice, round number to each product?
Every decision in retail is made for a good reason, and pricing is no different. Turns out, ample empirical evidence backs a strong theory explaining the odd prices attached to most products.