Pricing items at $0.99

is a common marketing strategy known as "odd pricing" or "charm pricing". This technique leverages a psychological phenomenon where consumers perceive prices ending in 9, 99, or 95 as lower than they actually are.

Why Does This Work?

Left-Digit Effect: When we see a price, we tend to focus on the leftmost digit. So, $0.99 is perceived as being closer to $0 than $1.

Perception of Value: Prices ending in 9 often create a perception of a bargain or discount.

Habitual Buying: Consumers may be accustomed to seeing prices ending in 9, and it can become a subconscious cue to purchase.

In essence, pricing items at $0.99 can make them seem more affordable and appealing to consumers, potentially leading to increased sales.