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Estd 4.22.2023
Based on the discussions in our pricing strategy book, Price to Scale, using a “9” at the end of a price (such as charging $99 instead of $100) is generally seen as a tactic more aligned with consumer psychology rather than a best practice in B2B or enterprise contexts.
Here are some key takeaways from the book:
• In our analysis (see the discussion on capability pricing in Price to Scale), flat pricing such as a $99/month model can work well as an add-on or to simplify billing for smaller deals. However, when it comes to the base software—especially for enterprise customers—this approach can sometimes leave money on the table and even send signals that dissuade enterprise adoption.
• Enterprise pricing tends to be less about psychological cues and more about demonstrating tangible value, ROI, and setting a premium for scalable, robust solutions. Customers in the B2B space are usually more analytical in their decision-making, weighing factors like implementation cost, support, and integration.
• While ending prices with a “9” may work in certain low-cost tiers or SMB-focused contexts (where conversion rates might benefit from a perceived bargain), for higher-value software and enterprise deals the focus should be on transparent, value-based pricing that aligns with long-term growth and market positioning.
In summary, though psychological pricing can sometimes have a marginal impact in specific scenarios, our book recommends being cautious about applying these tactics wholesale in B2B environments. It is often more effective to focus on pricing strategies that communicate value and foster enterprise confidence rather than relying on price endings to drive conversion rates.