Wednesday, August 03, 2005

Adios 99.95

Immortalized in marketing legends as "psychological pricing", Bata, reports Businessline, is about to give up its pricing strategy. Bata footwear was always priced at x rupees 95 paise. The 5 paise change was never asked nor given, except if you paid by credit card. And anyway in an era where 25 paisa coins are out of favour, 5 paisa is a long way off.

But the beauty of this pricing was at the hundreds. Something that cost 99.95, was "psychologically" less than 100 and I have not seen a greater feel good that can happen for 5 paise. And at 999.95, it was even more.

Some interesting tidbits

...There is also an unconfirmed theory that Bata, then headquartered in Kolkata, came up with a price of Rs 124.95 to avoid an entry tax, which was levied on products priced at Rs 125 and above.

For decades, it was a price tag that drew instant jokes, sarcastic comments and sometimes even arguments over consumer rights, but ending it all, Bata India has withdrawn its famous 95 paise pricing.

Read the full piece here.

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