Odd pricing can backfire if misapplied,specifically to service industries.

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Studies indicate that at certain important price breaks-$9.99 versus $10.00, $99.95 versus $100.00, and so on-customers mentally process the price as significantly lower because of the reduced digit count in the price point. However, odd pricing can backfire if misapplied. For example, it seems acceptable for a bottle of Voss to be prestige priced at $12.95 instead of $13.00, but a physician, management consultant, or CPA wouldn't want to charge a client $195 instead of simply $200 for services rendered.

Odd Pricing Can Backfire If Misapplied,specifically to Service Industries