What happens when you remove charm pricing.
What happens when you remove charm pricing? Canva's experimenting with this.
Everybody knows it's a best practice to end prices in 99.
This is called psychological pricing or charm pricing.
$2.99 feels closer to $2 than to $3 even though its only a penny away from $3.
Canva changed all of their pricing to remove the 99.
And this change stuck.
They're getting more customers with this pricing change and leaving it like this.
The prior assumption is charm pricing is best.
But this Canva experiment makes people revisit their prior assumptions.
#buildinpublic #startups #pricingstrategy