Almost all price tags have numbers ending in 9, like 499, 899, 999, etc. I always have wondered what was the logic behind the pricing.
A recent paper explains it. It says that people calculate the worthiness of a product in whole numbers and pricing not in whole numbers confuse the consumers.
buyers were less likely to negotiate the price down as far when they encountered a precise asking price.
This is another reason. It gives an illusion that the seller has calculated the price precise to the last digit.
One more tactics might be to make the price look lot lesser than actual price. For example, 999 is not 1000, which also means it is 3 digits and not 4 digits. Since we read from left to write, it looks lot less.
One more argument is that store owners don’t want cashiers to do the math in mind and want them to do the math in the machine and in turn make them enter the sell in the system. This too sounds reasonable.
I guess lot of research needs to be done.
I am very sure you would be drowning in Google App Engine (GAE) announcements news with people excited/ disappointed with it. We are digital people and hence we can only be 0 (disappointed) or 1 (excited).
At first sight, it looks like Amazon’s AWS. But, it isn’t. It is more like a walled garden. You can only code in Python (atleast for now). You can only use G Ads. You can integrate only Google apps (signup, gmail, etc.). Term of use is one more dark area. No one is talking about privacy concerns.
I can see the Google’s business model. They want to show you more Ads. They gave you blogs (only Google ads), they gave you Gmail, they are giving you Android and now, they will give a platform on which you build web-apps and many more. The model is simple but I seriously doubt the model. It is not sustainable.
Nevertheless, I am very interested to know what Google will do to sustain this model and its sliding stock price.
I am not against the whole concept but GAE is trying to lock down developers into a platform and an Ad platform which is what is worrying me. Are we seeing one more Microsoft in making? Only this time, Google is trying to lock users using opensource tools.
I would prefer AWS anyday since it is flexible both in hardware and software options, unlike GAE. Let us see how the developer community take this one. There is no traction among developers both for Opensocial and Android. No wonder, $10 Million was announced to develop apps for Android.
To sum it up: If you are late to the market, Open (opensocial, android) it. If you are first few and very strong, keep it as walled garden and monetize on the ad . This is Google philosophy.