Expert Answer • 2 min read

Should I price just below round numbers to improve conversion?

I'm curious about psychological pricing strategies and whether using prices like $9.99 instead of $10 actually impacts customer behavior. My e-commerce store sells multiple product categories, and I want to understand if this subtle pricing technique can genuinely influence purchasing decisions or if it's just an outdated marketing myth. I'm looking for data-driven insights into how minor price adjustments might affect consumer perception and conversion rates across different product types and customer segments.
Muhammed Tüfekyapan

Muhammed Tüfekyapan

Founder & CEO

2 min

TL;DR - Quick Answer

For mid-range cosmetics ($20-60), pricing just below round numbers ($38 instead of $40) typically increases conversion by 5-10% due to the left-digit effect. For premium products ($80+), round numbers or just-above-round ($85, $92) signal quality better than .99 endings.

Complete Expert Analysis

Should I Price Just Below Round Numbers to Improve Conversion?

The left-digit effect is one of the most replicated findings in pricing psychology: $39 is perceived as significantly cheaper than $40 because the leftmost digit drops from 4 to 3. This perception gap is real even when the actual price difference is only 2.5%. The question for cosmetics brands is whether this price psychology aligns with your brand positioning.

Left-Digit Effect in Cosmetics Pricing

PricePerceived CategoryConversion Effect
$29.99 vs $30Budget/accessibleCharm wins - shoppers think "20s range"
$39 vs $40Mid-rangeModest charm advantage
$48 vs $50Accessible premium$48 still in "40s range" perception
$89 vs $90PremiumMinimal effect; $90 may signal quality better
$145 vs $150Luxury$150 round number signals luxury tier confidence

Rules for Below-Round Pricing

  • Use for products $15-55 where value perception matters
  • Avoid .99 endings for clinical/luxury brands
  • If using charm pricing, be consistent across the range
  • Test: charm pricing increases conversion but can reduce LTV for premium segments

Common Mistake

Using charm pricing on some products and round pricing on others without a clear rationale creates pricing inconsistency that confuses shoppers about your brand tier. Pick a pricing strategy that reflects your positioning and apply it consistently across your range.

Growth Suite Tip

Test pricing psychology with Growth Suite's A/B Testing Module. Run $38 vs $40 on your mid-range bestseller for 3-4 weeks. Measure both conversion rate AND revenue per visitor - sometimes a higher price with slightly lower conversion produces more total revenue due to the margin difference. Always measure revenue impact, not just conversion rate.

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Muhammed Tüfekyapan

Muhammed Tüfekyapan

Founder & CEO of Growth Suite

With over a decade of experience in e-commerce optimization, Muhammed founded Growth Suite to help Shopify merchants maximize their conversion rates through intelligent behavior tracking and personalized offers. His expertise in growth strategies and conversion optimization has helped thousands of online stores increase their revenue.

E-commerce Expert Shopify Partner Growth Strategist

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