Dr Bob,

I've read a lot of so called research that goes into the psuedo science of pricing, trying to determine the 'psychological' keys in the numbers. The bottom line is, nothing I've ever seen convinces me there is any magic solution.

The only method that has proven to me the relative value of one 'price' over another is actual sales results. Your customers are the ones who will tell you whether the $4 difference is a real difference or not. And quite frankly, at a $300 price tag, $4 shouldn't make any difference at all. (If the $4 is a serious consideration in your profit margin, you could tack it on as a processing or handling fee.)

Hope this helps.

Good Luck!

Source: http://www.abusinessmentor.com

The only way you'll know for sure is to test price variations. If you are selling online, you can use something known as A/B testing, which lets you serve a web page with the different prices you want to test - and then compare the results. Google has a tool that lets you do this, and there are other companies that sell software to do A/B or multivariate testing. (Testing a number of items on a page at one time.)

If you are selling through retail channels, use different coupons with different coupon codes to test which price does better. Be sure to allow a sufficient number of sales so you have a valid comparison

Source: http://www.businessknowhow....