Mug Pricing & Royalties: Why Ending in .95 to .99 Works

[Susang6]

I’ve been taking a closer look at my mug pricing and wanted to share a few thoughts. I’d also love to hear how others approach royalties are you setting a flat storewide rate, like 25%, or adjusting item by item?

I've been comparing similar mugs online and in local shops, especially those with a seasonal vibe. After some back-and-forth, I settled on $15.95 for the classic 11-ounce size with a 22.7% royalty.

Why $15.95 instead of $16.00? It simply looks and feels better. Prices ending in .95 tend to resonate more with buyers, especially during promotions. This taps into psychological pricing those endings suggest a sale, even when it’s regular price. It’s a subtle but effective strategy: $15.95 or $15.99 feels more inviting than $16.00, even though the difference is just a few cents. Larger retailers have used this approach for decades, and I’ve found it works well here too.

Do you price your mugs or other products with this strategy in mind? 

 Reference: Psychological Pricing – Definition, Examples, Strategies (WallStreetMojo)

Written by Susan Golis, Freelance Writer and Content Creator 

[NigelSutherland]

As far as I can see you can't set different prices for different countries. You set one price and it automatically converts to other currencies. If I set a price of £11.95 for a mug here, it'll show differently for an Australian, Canadian, German etc.

i know the royalties fluctuate daily. I wonder if the published prices do too?

[Susang6]

Hey Nigel, you nailed it.  I just found out that  Zazzle only lets us set one base price and then automatically converts it for shoppers in other countries. So if you list a mug at £11.95, people in Canada or Australia will see a different number based on exchange rates.

Prices can shift a little depending on currency changes, but your royalty rate stays put unless you manually adjust it. It does make it tricky to get that .95 or .99 price in every market, unfortunately.

Here’s a link that breaks it down better than I can:
Earnings Payments to Zazzle Creators

Hopefully Zazzle gives us more control someday. For US customers I am pricing my products as close as I can to           ,95 to .99.   

[Susang6]

I followed your blog...the set up looks great.   Did you follow my blog...I have six.. Plus I am a co-author on a business blog....yeah I know, I like to write. 

[JerryLambert]

One of my professors called it "charm pricing". I am still a stickler to it. I believe that it is more of an effect of conditioning than left/right brain psychology, but that is another conversation. It doesn't work here for many reasons, but the main reason is how Z structures its pricing.

Everything is almost always on sale here. For example, I have a set of business cards that I have meticulously priced at $29.95. However, at the moment they are 15% off making the price $25.46. Next week they might be 20% or 50% off. Who knows?

I haven't gotten any in awhile, but I used to get advance notice emails of upcoming sales. It would be great for strategic pricing if we could change royalties on the fly, but we cannot. 

My strategy here is to try and make some sort of reasonable royalty without feeling like I am ripping the customer off, which just got a lot harder here this year. 

[Susang6]

Hey Jerry…seems like old times with these kinds of questions.  Recalling our old discussion about other designers’ products on our landing pages feels like the dark ages now.

I totally agree with what you’re saying. Zazzle’s pricing landscape has shifted a lot. I remember when nearly everything was consistently 15% off, and that really influenced how we structured our pricing. These days, sales are more selective sometimes 30% off a handful of products while everything else stays at regular price.

That’s where the charm pricing strategy you mentioned ($29.95) might still have psychological pull, especially when the discounts vary. I’ve been testing it on my mugs, curious to see what resonates. Your thoughts on conditioning versus brain hemisphere psychology are fascinating. I’ve also heard similar perspectives from creators with retail backgrounds who still stand by charm pricing

It’s true that without flexibility on royalties, strategic pricing feels a bit like guesswork.  I think advance sales alerts would be really helpful.

Here's another article I read on charm pricing...its for POD...you may find it interesting. 

[Susang6]

Also >>> With the rising cost of living, I think most shoppers have become conditioned to seek out bargains. That’s where charm pricing like $29.95 or $14.99 still plays a role. Many people instinctively associate prices ending in .95 or .99 with discounts or sale items,.

According to Analytics Steps, charm pricing works because “customers tend to perceive prices ending in 9 as significantly lower than the next round number,” even if the difference is just a few cents. It’s a classic example of how perception can override logic in purchasing decisions.

In the POD world, especially with platforms like Zazzle where discounts fluctuate, this kind of pricing might still help products stand out at least visually as a better deal.

[Connie]

That's really interesting- I admit I don't put that much thought and effort into trying to set exactly the right royalty. I just try not to make the price higher than everybody else in the Marketplace, but still high enough to make up for the high fees. It would be easier if Zazzle would allow us to change royalties anytime, rather than just once a month.

[Susang6]

I’ve seen research on “charm pricing” (those .99 endings) and realized that when I shop retail, tags like $15.99 feel like a deal even if it’s just a few cents difference. So I thought, hey, why not try $15.95 for mugs and see what happens. Especially now that Zazzle seems to run sales differently, highlighting select products while others stay full price. That little price nudge could help mugs sell “looks like it’s on sale”, even when they’re not discounted.

It’s all trial and error at this point

[Amanda23]

I absolutely do this the large marjority of the time. Especially if the price is close to that "full" next dollar amount. 

The trick, of course, is that everything on Zazzle is on sale almost all the time. lol So the customer doesn't always see my clean number. 😄

Amanda