Why do companies fall in the circle of 99? What is the secret behind keeping the price tag of Rs 99, 599, 999?

New Delhi. From e-commerce sites like Amazon-Flipkart to sales in big malls, you will often find a common thing. That is, if the price tag of a commodity is not full of Rs.100, but Rs.1 less than that. Like 99, 599, 999 or 19,999 rupees. This thing must have come in your mind sometime or the other that why companies keep the price of things like this. Does it earn more? Sales increase or is there any fund of tax? First of all, you should know that companies do not do this on a whim. There is a secret behind this.

As a strategy, the company keeps the price of a product at Rs 99 or 999 instead of keeping the rate at Rs 100 or Rs 1,000 at the fixed time. Companies do this to increase sales. This is a tried and tested recipe for increasing sales over the years. By ending the price at 99, neither the company gets any tax exemption nor any other benefit.

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This is psychological pricing strategy
Actually companies keep such prices of the product under Psychological Pricing strategy. Instead of keeping the price at Rs.100 or Rs.1000, if the price is kept at Rs.99 or Rs.999, then the sale of goods increases. Actually, whenever you see the price of a product in the figure of 9, you find it less. If the price of a product is Rs 599, then you will find this price closer to 500 at a glance, not 600. Psychological pricing strategy is adopted by companies to attract the attention of customers towards their products.

research proven
The effectiveness of psychological pricing strategy has also been proved in the research of Chicago University and MIT. Both the institutes did an experiment. Under this, he kept the price of women’s clothes in the categories of $ 34, $ 39 and $ 44. The clothes that were sold the most were priced at $39. Although this strategy is adopted by every company to increase the sales of its products, but it is mostly used during sales.

Earning extra than Re 1
There are many people who do not withdraw a single rupee when the bill is in the number 9 (like 999, 499, 1999). Many times the shopkeeper himself does not return 1 rupee by saying that there is no missing money. If the shop is small then this one rupee goes in the pocket of the shop owner. Keeps cashier in mall etc. Because he has to give the account of only the billed money. But, the aim of the company or the shopkeeper is never to charge Rs 1 more, rather their aim is to increase the sales. 1 rupee does not matter to them.

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Tags: business news in hindi, flipkart sales, online sales