True Business Story: What a Difference a Nickel Made

One of my dumber ideas was the time I decided that $100 was a better price for direct mail marketing than $99.95. Smarter people than me thought that was crazy. I said that the nickel difference was obvious, an even hundred was a cleaner and more direct price offering. The $99.95 was mildly insulting. I insisted we try it.

Everything else was the same. We changed only the price.

Response went down to about 40% of what it was at $99.95.

This was back in the days before the Internet mattered, and small software publishers often used direct mail to generate sales, the late 1980s.

Direct mail was really hard. Hooray for the Internet.

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