What’s the 80/20 newsletter? Created by LOGO.com, each issue breaks down one small but powerful marketing tip that drives big results for businesses. Let’s get into it!
The 80/20 Pricing Rule
Hi {{given_name}},
Ever wonder why $99 feels like a steal…but $100 feels like a splurge? Even though it’s just one tiny dollar?
💡This week’s 80/20 rule – Use charm pricing: prices that end in .99 or .95.
It’s one of the oldest tricks in the book—but it works. And it takes less than five minutes to apply across your business.
Let’s break down how this small pricing nudge can lead to bigger conversions, happier customers, and more money in your pocket—all without changing anything else.
Spoiler: it’s not about being sneaky. It’s about how our brains are wired.
Why This Rule Works
🧠 When people see $99, they don’t just think “one dollar less than $100.” They think “ninety-something”—and that feels cheaper.
This is called the left-digit effect. Basically, we read numbers from left to right. So when that left digit drops (from 100 to 99), our brains go: ooh, that’s a deal.

Here’s a fun stat: One study found that charm pricing (like $39 instead of $40) outsold both $34 and $44 for the same product. Yep—$39 even beat the lower price of $34.
Why? Because .99 pricing doesn’t just look cheaper—it feels like a better value.
And it’s not just academic. Real-world businesses have tested this for decades and on average have seen up to 24% more sales just by rounding prices down slightly.
So even though it’s just a $1 drop, that small change can:
Make your product feel more affordable
Reduce buyer hesitation
Lead to more people hitting “Add to Cart”
Best part? It’s totally free to try.
Businesses That Leverage This Rule
You’ll spot charm pricing just about everywhere once you start looking.
🛒 Walmart – Known for prices like $4.97 or $19.88. These oddball numbers signal that you’re getting the absolute lowest possible price.
🧼 Dollar Shave Club – Their $9.99 starter set is a classic charm-price offer. Looks great. Feels affordable. Moves product.
💻 Apple – Even Apple, which sells premium products, has used $999 instead of $1,000 for their iPhones. That left-digit drop makes it slightly less jaw-dropping.
⛽ Gas stations – Gas is almost always priced like $3.99 9/10 per gallon. That little .9 isn’t there by accident—it’s pure psychology.
📚 Bookstores, cafes, Etsy shops, and subscription boxes all lean into this too. From $14.99 eBooks to $29.95 coffee bundles, charm pricing is one of the most widespread pricing moves in business—for good reason.
It works across industries because it's simple and universally effective.

How to Apply This Rule to Your Business
Ready to roll it out? Whether you're selling services or products, here's how to do it with minimal fuss:
🤝 For Service Providers (Consultants, Coaches, Freelancers, etc.)
Instead of quoting:
$100/hour → try $99/hour
$500 package → try $495 or $497
If you list prices on your site or proposals, those little tweaks can help clients feel like they’re getting more value—without you losing much at all.
📣 Pro tip: Use charm pricing for intro offers or starter packages to lower the friction for first-time clients. A “First Session – $49” feels way more approachable than “$50.”
Just be mindful of your brand vibe. If you’re going for luxury or high-end, clean round numbers might actually work better (like $300/hour). But for most service businesses, charm pricing makes you more approachable and accessible.
🛍️ For Ecommerce Stores
This one’s a no-brainer.
Go through your product catalog and spot any clean numbers like:
$10
$20
$50
$100
Then, adjust them slightly down:
$10 → $9.99
$20 → $19.95
$50 → $49.99
$100 → $99
✨ Even digital products benefit from this. Ebooks, templates, online courses—they all feel more affordable when they’re under a “price cliff.”
Also, if you show original prices and sale prices, charm pricing can make discounts feel deeper:
Was $40 → Now $29.99 hits harder than just “Now $30”
💬 Bonus tip: Stay consistent. If most of your items end in .99 or .95, make them all follow that pattern. It looks more intentional and professional.
Summary of Rule and Actions
To recap, here are the steps to apply this 80/20 rule to your site:
1️⃣ Audit your prices – Look for any $X.00 numbers
2️⃣ Drop them down – Aim for .99, .95, or .97 endings
3️⃣ Keep it consistent – Across your whole store or service menu
4️⃣ Test it – Try charm pricing on one product or offer and see what happens
5️⃣ Combine it with good design – A bold “Now $49.99” on a product page does wonders
A few cents might not sound like much—but the results speak for themselves. More sales, better perceived value, and zero marketing spend required.
Website Review
🔎 For this week’s website review, let’s look at Beardbrand. Beardbrand is an e-commerce company specializing in premium men's grooming products, particularly for beard care. They offer a range of oils, balms, washes, styling products, and tools, focusing on high-quality ingredients and sophisticated fragrances.
💡 The Good:
Comprehensive Navigation: The site offers clear and well-structured navigation with categories like "Shop," "Beard," "Hair," "Body," and "Fragrances," and logical sub-categories for different product types.
Community & Content: "Join Our Community" and "Blog" sections (featuring articles on beard styles, tips, and men's style) aim to build community and provide valuable content, enhancing user engagement.
Robust Customer Support: Readily available "Contact Us," "Returns & Exchanges," and "FAQs," along with a phone number for style consultations, demonstrate good customer support practices.
Effective Promotional Practices: A "Promotional banner" highlights key offers, and a shipping incentive ("You're $75 away from free USA shipping") encourages larger order values.
Mobile Responsiveness: Elements like "Close sidebar" and "Open menu" suggest a design that adapts well to various screen sizes.
🔧 Suggestions:
Direct Homepage Reviews/Testimonials: Adding visible customer reviews or testimonials directly to the homepage could significantly boost trust and conversions, as these are not explicitly detailed in the homepage snippet.
Clearer Homepage Value Proposition: A concise, overarching value proposition for the Beardbrand brand on the homepage could further clarify its unique selling points.
Incorporate Interactive Elements: Consider adding interactive features like a "Find My Fragrance" quiz or product demonstrations to enhance user engagement.
Have a website you want reviewed?
Reply and let us know—we’d love to take a look!
Resources for this edition
Here’s some great reading if you want to dive deeper:
See you next time for another simple, high-impact strategy!
The LOGO Editorial Team
