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How a $0.99 Difference Made One Company $71.6 Billion Revenue — And How You Can Achieve It Too
Pricing isn’t just about numbers; it’s about understanding the psychology of the buyer
Picture this: You’re in an Apple Store, two gleaming iPhones vying for your attention. One is priced at $999, the other at a cool $1,000. Logically, the difference is negligible, a single dollar. Yet, that $999 price tag whispers “bargain” while the $1,000 shouts “premium,” doesn’t it?
This tiny psychological trick — pricing products just below round numbers — contributed to Apple’s staggering $71.6 billion iPhone revenue in the first quarter after iPhone 13’s launch.
Their psychological pricing strategy, combined with the product’s features and marketing, helped them achieve their highest-ever annual shipments of 237.9 million units in 2021. But that’s just scratching the surface of how pricing psychology shapes our buying decisions.
Now, imagine what understanding and harnessing this power could do for your business. In my 13 years navigating the branding and marketing landscape, from startups to retail giants, I’ve seen countless businesses get pricing completely wrong.
