Teresa is trying to sell her condo. It has been on the market for six

QUESTION

Teresa is trying to sell her condo. It has been on the market for six weeks at $379,995 and so now she wants to lower the price. A new price of $375,995 would likely be received better by potential buyers than a price of $373,555.

Indicate whether the statement is true or false.

ANSWER

Answer: TRUE
Explanation: Psychological pricing: If you cut your asking price, make it easy for buyers to calculate the discount; otherwise, they may perceive only a small difference (e.g., cut from $595,395 to $580,395, not to $578,495).