Why the $0.99 price point?

…Ever wonder why most prices end in 99?…Have you ever wondered why Apple chose 99 cents…as the base price for a song on I-Tunes.…There is actually some sound retail psychology behind it.…Many studies have shown that a price ending in 99 makes a product's price…look more attractive than one that is rounding up to a full dollar amount.…This is why you see so many prices at stores…in the mall end in either 99, 98, or 95.…If a piece of clothing is priced at $999 has a much better…chance of selling than if it's priced at $10 according to the research.…

You can see this with high ticket items like cars with…prices like $24,995, because it doesn't…break the psychological barrier of $25,000.…When it comes to buying a song, 99 cents just seems like…a lot less then a dollar even though it's almost the same.…The same holds true of Amazon song pricing at…69 cents, which still seems less than 70 cents.…We've been trained by years of buying at retail to…look at the nine at the end of the price tag.…It's just comfortable for us.…