Money March 25, 2020

Ask IH: USD 99 vs USD 100


Our current pricing is $10 monthly / $100 yearly (

Now, my co-founder says that we should set the yearly plan at 99 as it works better whereas I believe that this mental model used to work years ago and nowadays, people don't get affected by this. They are trained to understand that 99 is as good as 100. Further, I also believe that 99 is worse as users will feel we are trying to trick them psychologically using old tactics.

Do you have any similar experience in your company? Which pricing option would you prefer and why? Let us know if you know of any interesting case studies on this topic. 😇

  1. 6

    $99 for sure.

    Did you know that people avoid Corona beer because of the Coronavirus crisis?

    You're overestimating the average intelligence of consumers.

    1. 2

      I also see most of the companies use X.99 convention than X+1. I think the perceived value of 100 than 99 is more than just 1 unit.

    2. 1

      Bwahahaha. Thanks for the laugh to an otherwise mundane day.

    3. 1

      Wow, I'm pleasantly surprised! Thanks for this. 🔥

  2. 4

    $100 looks more straightforward than $99. $100 is like hey, we want to earn something, while $99 is like, hey we want to earn something, but trick you into thinking it's cheap. In that regard I think the $100 option signals more self confidence.

    Either way, I wouldn't really bother about which one it is as long as the added value to me is bigger than the price I'm paying for it.

    1. 1

      I completely resonate with you on the self-confidence part! That was my reasoning as well. 💯

  3. 3

    99 it's an old trick BUT it works. Go for it.

  4. 3

    What about $95? That way is not 3 digits, and it's not the psychological trick either.

    1. 1

      Sounds good but I haven't seen anyone doing it. 🤔

      1. 1

        I'm doing this with €15. It's more than 10, but it's not 10, which makes it so that people do not make the connection with 10 buck services like Spotify, Netflix and so on. It's not lower than 10 either, which would make a connection with cheap (as in cheaply implemented) alternatives.

  5. 2

    as a customer? I prefer 99 on 100 :D

    1. 1

      Oh, thanks for your input! 🙌

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