What is Odd-End Pricing?
Odd-end pricing is a pricing strategy involving the last digit of a product or service price. Prices ending in an odd number, such as $1.99 or $78.25, use an odd pricing strategy, whereas prices ending in an even number, such as $200.00 or 18.50, use an even strategy.
It has been suggested that pricing items just under a whole number, such as at $29.95 instead of $30.00, makes the price seem like a bargain – that customers will focus only on the first number and perceive the price to be closed to, in this case, $20 than to $30. In broader terms, odd pricing suggests a bargain versus even pricing, which encourages buying.
According to a 1997 study reported in Marketing Bulletin, more than 90% of advertised prices at that time ended in an odd numeral. The economy has changed and shoppers are certainly savvier today, but it is likely that a majority of prices still end in an odd number.
If tenants do see odd numbered prices as bargains, that perception should play into a business’ pricing strategy. If the rental amount desires to be seen as a good value, or a discounted, pricing items using an odd pricing strategy makes a lot of sense. And Nestwell is positioning your rental as an upscale rental, or with premium, pricing using whole numbers – even numbers – makes more sense. Depending on the size, type and location of the rental will also dictate how Nestwell positions your rental when advertising.