The .99 pricing strategy is a psychological pricing technique where goods are priced at just below a round number by 1 cent. For example, instead of being priced at $10, an item might be priced at $9.99 or instead of $100, an item might be priced at $99.
The goal of this technique is to create the illusion of value by making the price appear to be lower than it actually is. Studies have shown that prices ending in .99 are more effective at driving conversions than other prices, making it an important strategy for every small business.