Why is everything always $9.99 instead of just $10?
Or in the online business world… $997 instead of $1000?
Spoiler alert: It’s not because those last few cents or dollars matter all that much to your bottom line. It’s because of a sales tactic called charm pricing – a psychological strategy that makes prices feel smaller than they really are.
From Target shelves to coaching programs, charm pricing is everywhere. And while it does work (more on that in a sec), many of us in the values-led entrepreneur space are starting to question it.
Because if you’re building a business rooted in justice, equity, and accessibility, you probably don’t want to rely on gimmicks or subtle manipulation to drive sales. You want to build trust with your audience – not trick them into clicking “buy now.”
The gist: Charm pricing is the practice of ending prices in .99 or 7, like $97 in place of $100, so they feel smaller than they are. It works through the left-digit effect, where buyers focus on the first number they see. Ethical alternatives include round pricing and transparent payment plans that keep costs clear.
Part of the Psychological Pricing & Sales Tricks guide.
Table of Contents
You can run a profitable, sustainable business without giving in to sleazy sales tactics – or ending everything in 7.
What Is Charm Pricing?
Charm pricing – sometimes called psychological pricing – is the practice of ending prices in .99, .95, or other odd numbers to make them look lower than they really are. Think:
- $9.99 instead of $10
- $49.95 instead of $50
- $997 instead of $1,000
This technique is everywhere – retail stores, online courses, coaching programs, SaaS pricing… you name it. And it's not just a coincidence or personal preference. It's a deliberate sales strategy rooted in the way our brains process numbers.
Charm pricing is designed to “charm” the buyer’s brain into perceiving the price as a better deal. Even though the difference is just a few cents (or dollars), we interpret the leftmost digit as a big difference. So $9.99 doesn’t feel like “almost ten” – it feels closer to “nine.”
And yep, this trick extends beyond cents. In the world of online business, it’s common to see offers priced at $97, $197, or $997, rather than rounding up to the next hundred. This version of charm pricing has been sold as a “conversion hack” – a magic formula that supposedly boosts sales.
But just because something is common doesn’t mean it’s conscious – and that’s what we’re here to unpack.
Why Does Charm Pricing Work? (The Psychology Behind It)
Charm pricing works because our brains love shortcuts when it comes to processing numbers. (No shade – it’s just how we’re wired.)
Here’s what’s going on under the hood:
The Left-Digit Effect
Our brains read numbers from left to right, and we tend to anchor on the first digit we see. So even though $19.99 is only a penny less than $20, we interpret it as being a teens price, not a twenties price. That left digit – 1 instead of 2 – subconsciously tells us we're getting a better deal.
This same trick applies when we price something at $97 instead of $100. The drop from 3 digits to 2 makes it feel significantly cheaper – even if the difference is minimal.
The “Feels Like a Bargain” Effect
We’ve been conditioned to associate .99 or .95 endings with discounts, deals, and mass-market pricing. Think of it as a learned cue: when we see those endings, our brain goes, “Oooh, sale!”
This perception sticks even when we know better. Studies show that charm pricing can still influence purchase decisions – even among people who are fully aware of the tactic.
And What’s Up With All the 7s?
If you’ve spent any time in the online business world, you’ve probably noticed a trend: courses priced at $97, $197, $497, $997… always ending in 7.
This isn’t random – it’s a charm pricing variation that marketers have been repeating for years. Somewhere along the line, “7” got branded as the conversion sweet spot, and it caught on like wildfire.
Some believe 7 feels friendlier or luckier than 9. Others say it stands out more in a crowded market. But let’s be honest: a lot of people are just copying what they’ve seen work for others, without stopping to ask why – or whether it aligns with their brand values.
Here’s the deal: “ends in 7” pricing is still charm pricing – just with a different wrapper. It’s still designed to nudge people toward a purchase using subtle psychological influence. And if you’re committed to ethical marketing, it’s worth examining whether that subtle nudge aligns with the kind of experience you want your audience to have.
What Are the Downsides of Charm Pricing?
Just because a tactic works doesn’t mean it’s right for you.
Charm pricing is rooted in manipulating perception – which, for many mission-driven entrepreneurs, raises a big ethical red flag. And if your goal is to build relationships based on transparency, equity, and trust? It's worth taking a closer look.
Here’s where things get sticky:
It Feeds Into Manipulation Culture
Charm pricing plays directly into the psychological shortcuts our brains use to make decisions. While that might sound “clever,” it can also cross into manipulative territory – especially when used without clarity or consent.
It relies on the buyer not noticing or not thinking too hard about the actual value. And that dynamic? It’s the opposite of trauma-informed, consent-based marketing.
It Can Be Especially Problematic for Neurodivergent Buyers
Many neurodivergent folks process information differently. Tactics like charm pricing can increase decision fatigue, cause analysis paralysis, or feel misleading (“Wait, I thought this was $100?”).
What’s meant to be a “tiny nudge” might actually feel confusing or disorienting to someone trying to make a values-based decision.
It Undermines Transparency and Trust
When you use charm pricing, especially in the .99 or ends-in-7 formats, it can unintentionally send the message:
“I’m trying to make this price look better than it is.”
Even if your offer is incredible and totally worth it, the pricing structure itself might lead some folks to second-guess your intentions.
And for those of us building values-aligned brands, that kind of unintentional mistrust is a dealbreaker.
Can You Use Charm Pricing… Ethically?
Let’s not toss every .99 price tag into the unethical trash heap just yet.
Charm pricing isn’t inherently evil. Like many business tools, the key is intent and transparency. So before slapping $97 on your next offer because “that’s what everyone else is doing,” take a pause and ask:
Why am I pricing this way?
Are you ending in .99 or .97 because it genuinely aligns with your strategy and audience? Or are you doing it out of habit or fear – afraid that if you round up, no one will buy?
Intent matters. But so does how your audience experiences your pricing.
Would your ideal client feel respected – or misled?
Put yourself in your audience’s shoes (especially if your audience includes neurodivergent folks, trauma survivors, or people burned by pushy online sales tactics).
- Would they feel like you’re trying to slide something past them?
- Or would your pricing feel honest, clear, and aligned with the value you offer?
Are you being transparent about pricing and value?
Even if you do use charm pricing, you can still be upfront about why. You might say something like:
“This program is $297 – because it’s under $300 and designed to be an accessible investment for folks who want to ease into this work.”
Giving people context for your pricing builds trust and removes that sense of “Are they trying to trick me?”
So yes – you can use charm pricing in an ethical way.
But it starts with intentionality.
Not doing what the marketing bros say “converts best.”
Not assuming your audience won’t notice.
But choosing a pricing strategy that feels right for you, and respects the people you’re here to serve.
What Are Alternatives to Charm Pricing?
If charm pricing doesn’t sit quite right with you (or your audience), you’ve got options. Ethical pricing doesn’t mean you have to guess or undercharge – it just means being intentional and transparent about your approach.
Here are some pricing alternatives that are more aligned with inclusive, values-driven marketing:
1. Round Pricing
Pricing something at $100 instead of $97 may seem like a small shift, but it can communicate big things:
- Confidence in your offer.
- Simplicity and ease for your buyers.
- A departure from manipulation tactics.
Round numbers feel clean and honest. For many neurodivergent buyers, that clarity is a breath of fresh air.
2. Value-Based Pricing
Instead of pricing based on market trends or arbitrary endings, consider:
- What is the transformation worth to your client?
- How much time/energy/money are you helping them save or gain?
- What feels fair and sustainable for both you and your audience?
This shifts the conversation from “what will convert” to “what feels aligned.”
3. Tiered Pricing
Offering multiple pricing tiers (like basic, standard, premium) allows you to meet people at different levels of investment without leaning on charm pricing tricks. It’s about choice and agency, not coercion.
4. Transparent Payment Plans
If you want to increase accessibility, try offering clear, no-penalty payment plans instead of dropping your price by $3 to make it “look cheaper.”
Transparency and flexibility go a lot further than psychological nudges.
5. Pay-What-You-Can or Sliding Scale (when sustainable)
For some offers – especially those serving marginalized communities – sliding scales or community-supported pricing can be powerful. It’s not the right move for every business model, but when done thoughtfully, it can embody your values and make your work more accessible. I really love the green bottle method, personally.
When your pricing structure reflects your values, your clients can feel that. And that trust? It’s way more powerful than a $7 discount.
What I Do (And Why)
I’ll be honest – I didn’t always question charm pricing.
In the beginning, I did what I saw everyone else doing: almost all my offers ended in 7. $97. $297. $997. It felt like the “right” thing to do – because all the online biz “experts” swore by it. I figured, Hey, if it works for them, it should work for me too… right?
But… it always felt a little off. Like I was playing along with a strategy that didn’t quite fit.
As I dove deeper into ethical marketing and unlearned some of the default sales tactics we’ve all absorbed, I realized I didn’t want to rely on psychology hacks to make sales. I wanted my pricing to feel as intentional, inclusive, and transparent as the rest of my business.
So I made a shift.
Now, I price my offers using 0s and 5s only.
That’s why my membership is $10/month – not $9, like so many other similar programs. And my 1:1 services? You’ll see prices like $750 or $3,000, not $497 or $2997.
Does it make a huge difference in revenue? Honestly, probably not.
But it makes a big difference in how I feel about my business.
It feels cleaner. More honest. More respectful of the folks I serve.
And that is reason enough for me.
If charm pricing still feels right for you, cool. If you want to try something new, go for it. If you’re not sure, test it out.
Especially if you’re neurodivergent or still figuring out what works for you, I want to normalize experimenting. Changing your mind. Tweaking things as you grow.
You don’t have to “get it perfect” from day one – you just have to stay aligned with your values and keep moving forward.
It’s Not About the Cents, It’s About the Integrity
Here’s the bottom line:
Charm pricing can work – but that doesn’t automatically make it the right choice.
If you’ve been ending your offers in .99 or 7 because that’s what you were taught… you’re not doing anything “wrong.” But as a values-led business owner, you have the power (and responsibility) to make conscious choices – even in the small stuff, like pricing.
This isn’t about shaming any particular number. It’s about asking:
- Does this reflect the kind of business I want to run?
- Is this how I want my audience to feel when they engage with my brand?
When we shift from squeezing conversions to building trust, everything changes. Pricing becomes less about psychology tricks and more about integrity, clarity, and accessibility.
So whether you round your prices, explain your pricing openly, or experiment with a new structure – let it come from a place of alignment.
Because it’s not about the cents – it’s about the connection.
Let’s Keep This Conversation Going
If this post has you rethinking your own pricing strategies – you’re not alone.
Many of us were taught to follow formulas without ever being encouraged to question them. But you can create a business that feels good, earns well, and honors your values… right down to your price tags.
And if you’re craving more support around ethical, inclusive marketing that works with your brain and your values?
- Check out this post on the Decoy Effect
- Or let’s connect over on LinkedIn or Instagram and keep the conversation going.
You’ve got this – and I’m cheering you on every step of the way.
FAQs
It can, especially for everyday retail items where shoppers compare prices quickly. Research results vary, though, and the effect tends to be smaller for considered purchases like coaching or services, where trust and fit matter more. Many service-based businesses find that clear, confident pricing serves them just as well.
Either can work, so let your values and your audience guide the choice. A round $100 tends to feel straightforward and confident, while $97 signals a deal. Whichever you pick, explaining what's included and why it costs what it does builds the most trust.
The left-digit effect is our tendency to focus on the first number in a price. Because of it, $19.99 feels closer to $19 than $20, and $97 can feel noticeably cheaper than $100. Charm pricing relies on this shortcut to make prices feel smaller.
Some research suggests round numbers feel more natural for premium or emotionally meaningful purchases, while prices ending in .99 tend to signal a bargain. For high-touch services like coaching or consulting, a round price can reinforce the care you bring. Your core values can help you decide which signal fits your brand.
Sliding scale pricing lets clients choose from a range of prices based on what they can afford. It makes your work more accessible while still sustaining your business. Sharing clear guidance on who each price level is meant for helps people choose with confidence. See how fairness fits into Just Marketing®.
The decoy effect and price anchoring are close cousins of charm pricing. Both shape how people compare options, sometimes in ways that cross into manipulation. Here's a breakdown of how the decoy effect works and what to do instead.
