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A penny for you thoughts? That about sums up what you can buy with a penny these days. Considering that, it’s quite interesting to note that the lowly, throw-away penny is actually incredibly important and valuable from a marketing standpoint. From an auto repair marketing strategy, is it better to let the customer keep it? Surprisingly, research says no. Consumers are onto this transparent marketing ploy and prefer rounded pricing.

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Origin Of Odd Pricing

We’re used to it now, but what prompted merchants to forego round-number prices ($10) in favor of convoluted odd pricing ($9.99)? One theory is that back when .99 cent ending prices originated in the 1800s, a penny actually was a valuable currency. All other factors being equal, if a customer could save a penny buying a shirt from Retailer A rather than Retailer B, he would go with Retailer A because he could get something worthwhile with his penny. Back then, for example, one could buy a copy of the Chicago Tribune for a penny. No one can say for sure what the first odd price was or what the motivation was. All that’s certain is it seems it is here to stay.

The Psychology Behind A Successful Discount Pricing Strategy

We’ve come a long way since the days when you could buy a bag of candy, a loaf of bread and a major newspaper for a penny. That pricing strategy has become outdated. A tactic like offering an oil change for $19.99 rather than $20 is certainly not what makes an auto repair discount successfulIn fact, research shows that such a pricing strategy is actually somewhat annoying to customers, as they really don’t want to hassle with small change. If you want your regular prices, promotions and specials to appeal to your customers, specify in your auto repair sales and marketing plan that pricing should consist of round numbers.

Case In Point: Consumers Seem To Prefer Decimal-Free Pricing

Not long ago, the developers of an online game ran a “pay what you want” promotion. For a limited time, people could log into PayPal, pay whatever they wanted to pay, and get the game. Some people went the cheapskate route and paid a cent (by comparison, the highest rollers paid $150). More than 65,000 people participated — not shabby for a representative sampling of peoples’ pricing preferences. The amount that almost 60% of customers chose to pay ended in a zero.

If you own an independent auto repair shop, fixing cars and providing outstanding customer service is in your wheelhouse. Trying to pinpoint what does and does not work from a marketing perspective may not be your forte. Fortunately, it doesn’t have to be; that’s where we can help.  We will never recommend that you discount your services to attract new leads. At Business Actualization, auto repair shop marketing is our specialty.  Building value in your services and your brand are things we excel in. Contact us and we’ll make sure your auto repair marketing strategy is a solid one.