“…the average person treats a price ending in .99 as if it were 15 to 20 cents lower.”
The tendency is called left-digit bias, when the leftmost digit of a number disproportionately influences decision-making. In this case, even though the real difference is only a penny, research shows that, to the average person, $4.99 seems 15 to 20 cents cheaper than $5.00 – which results in selling 3 to 5 percent more units than at a price of $5.00"
Yeah, if I want to sell something for $400 then I list it at $395 rather than $399.
And then I swoop in and list the same thing for $394
Hell of a deal! I’d pay an extra $6 for a deal like that!
$394.99
But then you wouldn’t sell it for 400.