There’s nothing like a 99-cent store or a $1.99 bargain meal to make consumers sense value.
Virtually all listing brokers adhere to the same sales ploy–and I’ve been fond of it as well. How often do we see properties offered for $999,000 or $4.9 million and so on?
It happens all the time.
What got me thinking about this phenomenon was a friend of mine who is marketing an Upper West Side co-op for an even $1 million. When I asked him why at his recent open house, he had a ready answer.
It seems yet another broker had mentioned to him that, when searching, brokers and consumers alike tend to plug in even numbers, say, $900,000 to $1 million or $1 million to $1.1 million. By using the 99-cent tactic, he contends, many searches omit properties that may well appeal to a buyer.
I’ve been trying to come up with a situation in which it is justified to use other than round numbers. So far, I have been unable to imagine such a case.
As a sales tool, I have to believe that round numbers make sense.
Licensed Associate Real Estate Broker
Senior Vice President
Charles Rutenberg Realty
127 E. 56th Street
New York, NY 10022
Very under discussed topic.
I have heard both sides of this argument. I tend to think there is more damage done by being slightly over the price point than slightly under. People tend to focus on their maximums rather than their minimums.