fletcheyc
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Looks cheaper to the person looking at the price that is it was priced at £1, I worked in a supermarket for years, you would be amazed the tricks they know so that they can play with your mind. |
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t3h1
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because £19.99 will make people have a quick look and think oh its only £19
£20.00 will make them think £20.. thats a bit expensive. |
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Raymo
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One of the oldest marketing tricks in the world, £19.99 sounds far cheaper psychologically than £20.00 |
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aRnObIe
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its the idea of making it beyond...aside from that, it looks cheaper... |
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jonboy
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£9.99 sounds better than £10.00 so it sounds cheaper.
For £9.99 you can join my business as it happens.
Interested? Check out my profile. |
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Mark G
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Perceptual price points
also referred to as psychological pricing or odd-number pricing
raising a price above 99 cents will cause demand to fall disproportionally because $1.00 is perceived to be a significantly higher price
see link |
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Lainey
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As many have said it is a psychological thing. When comparing prices people group together in 10's - so £1.73 seems about the same as £1.79 and the extra few pence would not impact liklihood of buying. At £1.67 vs £1.73 however £1.67 feels cheaper by more.
Asda pricing policy is not to round up to the 99 but to price at random numbers to make it seem as though they are fighting to save their customers every penny they can. |
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kevan
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It's a scam introduced by the ink producers. £3 or £2.99? Who is the real winner? The ink makers of course, that extra ink don't come cheap. Damn those corporations. |
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Gaz
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Originally it was so that the shop assistant had to open the till to give 1p change and couldn't pocket the money - but it also works well as a psychological trick to make the price seem lower. |
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coulditbemanilow
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Cause that's how much it costs! |
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paula p
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so you think its cheaper because you dont really think at the time its only a 1p from the round figure. |
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Laura
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It's a very interesting question, I want to know too. |
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David T
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Because they are taking you for a mug. |
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mexicotaz
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To keep the one pence coin in circulation. |
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Rufus
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Main reason originally is that it appears less. However consumers have worked this out and some pricing is now contrived to look like it’s been genuinely arrived at; so for instance you may price at £19.74. They are part of the psychological resistance to certain price barriers: 99p is better than £1 or £4.99 is better than £5.00 . . . and so on.
It may be worth mentioning that if your pricing is on the wrong side of one of these price barriers you could consider increasing it to very near the next. So for instance if you found your costs meant your unit price must be £32.99 you may find you could increase price your price to £39.99 0r even £49.99. On a larger stage pricing must take into account the competition and what customers perceive a product to be worth. On this note many organisations have moved away from pricing based on cost plus to market pricing. In market pricing you first research what your market will pay for a given product and then set out to manufacture and market it at this cost. |
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english_rocker_88
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thats actually annoying and im glad i am not the obly one who thinks so why not just have £10.00 |
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SunnyDays
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Because silly people think they are getting a bargain! There are so many examples of this, many adverts saying " oh whoppee, your new home for less thatn £100,000, when it costs just a penny less! Pure psychology |
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RACHEL
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They can charge the maximum amount to the customer with out having to pay tax on ten or 20 pound they only have to pay it on 9 or 19 pound tax is calculated per pound not per penny |
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Padme
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Head game |
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whatnoduff
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It´s a marketing thing... the physcology is that you are paying less than one pound, less than ten pounds etc.... plus the penny change tends to fall down the sides of the sofa, so in twenty years time when you have a good clear out you will probably find enough money to go and spend............... 9.99......... |
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franja
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It was initially to stop shop assistants stealing..... if an item was £1 they could take the £1 and say "Thank you very much, please come again." and put the £1 in their pocket............if the price were 99p they had to ring it in to the till to get the penny change. |
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mishnbong
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if they did'nt, the penny would b no good |
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old know all
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The official reason is that it makes the shop assistant open the till to provide change. If goods are prices at £20.00, the customer is likely to give the right money and the shop assistant could slip this into his pocket (or her handbag). At £19.99, the shop owner makes 1p less profit, but gets to keep it. |
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Gar
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To make it seem cheaper than it actually is although its only 1p cheaper than the rounded up figure |
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Mana
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To make you feel like it's cheap. |
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Savannah
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it makes it look cheaper. |
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sparkle79
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Because £9.99 sounds less than £10.00 and 19.99 sounds less than £20.00 - just a gimic to make you think you are spending less than you are !!!! |
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allgiggles1984
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mind tricks in business. its like music in stores to make u in the mood for buying more and cheering u up so u spend huge amount without realising.mean arnt they? emptying our pockets. |
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M J H
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It seems a lot less than £10, or £20 yet is only 1p different .. its all about price barriers and you sell a lot more at £9.99 than £10 .. its just how it is! |
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Tom C
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so that something worth £20 looks cheaper at £19.99. its not hard! |
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R.I.P.
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Because it looks just less than £1.00, £10.00, £20.00 etc. The latest ploy is to say the numbers like this, "The new sofa from D & S is just one nine nine! Just one nine nine!" Like that will encourage you to buy it. It's all about saving advertising time. Saying "One nine nine", is quicker than saying, "One hundred and ninety nine pounds." It's cheaper.
Sorry if I digressed from your question! |
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