Be Precise With Large Prices
Highly precise numbers feel smaller.
Based on 27,000 real estate transactions, specific prices (e.g., $362,978) are more effective than rounded prices ($350,000; Thomas, Simon, & Kadiyali, 2007).
Why? Maybe buyers are less likely to negotiate?
That’s what I thought — but nope. We just associate precise numbers with small values.
Think about it. You’re more likely to use specific numbers when dealing with small numbers (e.g., 1, 2, 3). These prices just feel smaller.
- Thomas, M., Simon, D. H., & Kadiyali, V. (2007). Do consumers perceive precise prices to be lower than round prices? Evidence from laboratory and market data. Johnson School at Cornell University Research Paper, (09-07).