Charm pricing is a pricing technique where prices are set just below a round number, most commonly ending in .99 or .95, to make them appear lower than they are.

The difference is small in absolute terms, but it changes how buyers read the number. A price of 99 feels meaningfully lower than 100 because buyers tend to focus on the left-most digit. This makes the price seem closer to 90 than 100, even though the gap is minimal.

Charm pricing is based on how people process numbers quickly rather than analytically. It reduces perceived cost without changing the actual value of the product or service.

In B2B, charm pricing is used less aggressively than in retail, but the principle still applies in certain contexts such as SaaS pricing pages, self-serve plans, or lower-ticket offerings. In enterprise or negotiated pricing, it is less common, as buyers focus more on total value, ROI, and contract terms.

Charm pricing is most effective when purchasing decisions are fast, comparisons are simple, and pricing is visible upfront. It is less effective in complex sales where pricing is customized or heavily negotiated.

Used appropriately, charm pricing can improve conversion and make pricing feel more accessible without changing the underlying economics.