Quote Originally Posted by Old Hack View Post
In the 1980s I worked for computer games companies and I can remember some research we did at that time on how various price-points worked. I can't remember the finer points of it, and it would be horribly out of date now anyway: but I do remember that games users didn't see any significant difference between prices of 6.99 and 7.99, for example, so it made sense for us to price our mid-range games at 7.99 rather than 6.99; there was a significant difference between 1.99 and 2.99, but no difference between 1.99 and 99p, so our budget range was priced at 1.99 and we didn't bother with anything more than the game, the case, and rudimentary instructions; and that anything over 20 was seen as very expensive and needed added value--so a bigger case, more extensive packaging notes, posters, etc.

As I said, that research would now be very out of date: but there are other analyses available online which might be worth looking at. It's interesting how peripherals (the posters, etc., that I referred to with the more expensive ranges) help sell items at higher prices, even though they don't add anything to the actual product you're selling other than giving the consumer a bit more stuff to look at.
Interesting. That does make me think I need to experiment a bit more with my other books to see what the price ranges are for each of them as well...