Pricing psychology & negotiation · strategy atlas
Prestige pricing threshold
what it means
Deliberately pricing above a round-number threshold rather than just below it, because in premium categories a higher, round price can itself signal quality and status rather than deterring purchase.
a real example
Luxury goods routinely price at round or even upward-rounded figures rather than charm-pricing just below them — a price that looks 'too precise' can undercut the effortless status the category is selling.
when to use it
Genuinely premium or luxury positioning, where the price itself is part of the product's signal of exclusivity, not just a cost to be minimised in the customer's mind.
when it backfires
Using prestige pricing without a genuine quality or status story behind it just makes an ordinary product needlessly expensive, with nothing to justify the number.