There is plenty written on Internet businesses. Topics covered range from how to write ad copy, formulating pay per click ads, and writing emails. But there has been little written on the topic of setting prices online.

Setting the right price online can mean the difference between a 1% and 5% sales conversion ratio. In other words, by having the right pricing you can sell to as many as five times the amount of customers that you could otherwise.

The reason pricing is so important is because people respond differently to different numbers. For instance, by pricing an item at .99 instead of $1, the illusion is given that the item is cheaper. This approach is used by high priced item sellers when they sell a car for $19,999 instead of $20,000.

Price your items similarly and you will see less hesitancy on your customer