How Charm Pricing Cut Our Refund Rate
We thought charm pricing was a tired trick. The A/B test moved our refund rate, not our conversion rate.
By Jacob
We assumed charm pricing ($29.99 vs $30) was a tired trick. Then we A/B tested it and watched our refund rate move — not our conversion rate.
The surprise
Conversion barely changed. But round-number pricing slightly raised perceived premium, and the customers it attracted were less likely to churn or return.
The cheapest customer to keep is the one who never felt tricked into buying.
What we run now
Round numbers on premium SKUs, charm pricing on clearance. Match the price ending to the story you're telling.
Takeaways
- Test price endings — they change who buys, not just how many.
- Round = premium; .99 = deal.
- Watch refund rate, not just conversion.
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