Here again, don't forget that homegrown produce or "fancy" 

 quality may be an entirely different product than that displayed 



Consequently, prices charged at roadside markets 

 compete with the supermarket produce. The road- 

 ask and get a premium on some of his produce. 



1 n supermarkets . 

 need not directly 

 side marketer may 



Pricing By Nines 



Another consideration in pricing that has been used by a wide 

 variety of retailers is pricing goods at prices ending in "9." 

 This is based on a hopeful psychological reaction of customers that 

 39i sounds like so much less than 40(t, or $1.99 so much less than 

 $2.00. This practice is very widespread and probably holds some 

 degree of truth. In fact, many retailers add whatever margin they 

 feel they must have and then round that figure to the nearest nine 



is that 

 with these 



One reason why 

 it is more d' 



uneven numbers 



the total sale price 



some small retailers resist "pricing by nines' 

 ifficult and takes more time to make change 

 mbers. But with the advent of the sales tax, 

 seldom comes out even anyway. 



A type of pricing that has similar psychological appeal to 

 consumers is the "two for..." system. This is often combined with 

 pricing by nines to come up with ^5<t or 2 for 29t. Shoppers often 

 can be enticed to increase their purchases by this mechanism. This 

 appeals to their need to be thrifty. It seems like a bargain, and 

 bargains always make a shopper feel good. 



One Price--Multiple Price 



A lower price for larger quantities is often used in roadside 

 markets. This is also an effective way to use price to increase 

 sales. An example of this is potatoes selling for 8 cents per 

 pound or 75 cents for a ten pound bag. Usually, it can be argued 

 that it costs less per pound to bag and sell potatoes in quantity 

 units than on a customer selection basis. So to sell larger quan- 

 tities makes some sense. But in addition, this system should in- 

 crease total sales and give the benefits of lower fixed cost per 

 unit. Again, we appeal to the shoppers' desire for thrift or a 

 bargai n . 



Price Lining 



Marketers often decide on three different "price lines"--say 

 39(t, 69i, and 99(t--and then fit all of a particular type of produce 

 into one of the three categories. Price lining is frequently used 

 for pricing certain lines of produce. Good examples are pumpkins, 

 Indian corn, and gourds. This method has much consumer appeal and 

 may also be effective for selling non-produce merchandise. It is 

 a relatively simple system. But consumers get used to certain 

 prices, and it is more difficult to change the price as wholesale 

 prices change. 



