What Can Wal-Mart Teach Traffic Exchanges?

Let me frame the story for you…

Last week, I was shopping for some baby furniture at a local Wal Mart. While my wife was going up and down the aisles looking at absolutely every thing this store offered, I was strolling around looking at the prices of everything.

As a savvy shopper would right? I wanted to find the best deal out there.

However, what I discovered wasn’t the low low low prices that Wal Mart is famous for. What caught my eye was this…

wal mart pricing

I wrote about pricing in the traffic exchange industry almost a decade ago and how we have to get away from ending our prices with 5’s and 9’s. And while you stroll up and down the aisles of the traffic exchanges in the market today, you’ll see….Mostly 9’s and 5’s.

Let me explain…

You see, our brains are wired to ’round up’ prices ending with 5’s and 9’s to the higher dollar. Take a look…

When you see $9.99You automatically round it up to $10. That’s $10 no matter what you may tell yourself, you have rounded it up to that price.

Now look at $9.97 That’s $9! Crazy right? Even though it’s only 2 cents less than $9.99, we don’t always round that up to $10. That looks, more like $9.

I don’t have the scientific proof of this and can’t make the claim as being 100% fact but here’s what I can tell you.

Look at Wal-Mart.

Arguably the king of offline retail and nowhere in their stores will you ever find a 5 or 9 at the end of their prices. And trust me when I tell you this, they’ll have the scientific data to back it up. So I choose to price things (and have for over a decade) like they do at Wal-Mart.

Try it out for yourself…You may think you are ‘losing 2 cents‘ by bringing the price down but I know when I did that so many years ago, I actually increased sales.

Jon Olson

I'm Jon Olson, I've been publishing Hit Exchange News since 2003 and been involved in the traffic exchange industry since...Well, the beginning :) I'd love to network with you as you browse the pulse of the traffic exchange industry! I am also a HUGE fan of reading your comments. I will respond to every single one! Poke around and enjoy the 'News! And thanks for hanging out...

8 thoughts to “What Can Wal-Mart Teach Traffic Exchanges?”

  1. Interesting topic, and timely for me because I am looking at RAISING prices for my managed WordPress hosting business. Because of additional services I’ve added, I need to raise my price from the starting point of $10.00 per month to something a little higher… $14.00 per month is probably too high. But I don’t want to go to $13.00 because that’s a number people instinctively don’t like — it’s “bad luck.” And I had been thinking that $12.99 or $12.95 is still essentially $13 bucks in anyone’s mind. But… what if I hike the price to $12.88 per month? That’s what this post has me thinking. Thanks Jon, good to read whatever’s on you mind, whenever you push out a new blog post.

  2. Thank you sir. Yea I mean we’ve played with solid numbers too…And have found great success. Lots of our monthly subscriptions are like $9 or $49 a month…No decimal places and no cents after the dollars. That worked for us great.

    But have completely gone away from the .99 or .95

    1. I’ve used the $9 for my login offers with great results after you discussed this about a year or more ago. You brought the subject up again a couple of weeks ago and reminded me so I’m going to utliise it in my eCom stores I’m starting. If its good enough for Walmart its good enough for me πŸ™‚

      1. Yeah we use 7 and 9 a lot when it’s a full number. But when it’s a decimal place and for ‘cents’ we try to stay away. Just doing what WalMart does lol

  3. I have listened to people tell me what ‘doesn’t work’ for over two decades. However, when I look around at what I ‘see’ working everyday in places like Walmart, Target, Whole Foods and other major outlets, I just smile.

    My daughter has a degree in Marketing and works for a multi-billion dollar import/export firm. What she learned, and they use daily, is – here again – what some of the so-called ‘experts’ have been saying is dead. Online and off, marketing/sales psychology produces results day in,day out.

    You can ‘choose’ to ignore the lessons you see (and work ON you) if you want. Your loss. Or, you can listen to the people that ARE getting results, evaluate how you can take advantage of what they are doing, and move ahead.

    I choose to listen to those that are achieving what I seek to do. Not some ‘expert’ selling an e-book for $9.99. Here again, Jon, you are demonstrating how looking at things long-term provides proven results. πŸ™‚

    1. I just watch what the bigger companies do. And if it works for them, I try to see how I can use the same tactics for my business. Simple really πŸ™‚

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