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SaaS 102- Closing Pricing & Understanding Metrics
Let’s Do A Quick Activity What Changes Would You Make To Gaana’s Pricing Strategy To Bring It Back To Its Former Glory?

Charm Pricing Charm pricing, also known as odd pricing, is the practice of ending prices just below a round number, typically using .99 or .95 (e.g., $9.99 instead of $10). Why It Works: Perceived Discount: Consumers tend to round down rather than up, perceiving $9.99 as significantly cheaper than $10. This small difference psychologically feels like a better deal. Cognitive Ease: The left-most digit has the strongest influence on perception. Seeing "9" instead of "10" feels like a good deal, even though the difference is minimal. Example in SaaS: Spotify: Offers its premium service at $9.99/month instead of $10. This makes the service appear more affordable to consumers, especially those who are comparing prices across music streaming platforms.