anonymous
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Sam Walton started this when he opened his first store. Every store had even amounts and he figured if he would go a cent or two cheaper he would get more customers. He did, then all other stores followed suit because they realized it made the items seem cheaper than what they were. Then it just became a trend.
Did you know that each chain store has a policy that they end in the same number each time regardless of the price? Walmart is a seven, not sure of the rest. I worked at Walmart and they said they started that years ago when they started taking returns, before they had barcodes. It was an easy way of them telling if they were getting back the same items that someone bought from there, or if someone was returning to walmart what they bought from somewhere else. |
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tonyallen4224
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Because if you make it even you'll have to pay extra 6 cents if you up it one more cents. (in michigan it's 6 cents on a dollar) |
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Noone i
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its called psychology in sales...if you read that its $199.99, its not $200, and that might seem too much.
The human mind doesnt always comprehend that its actually $200, minus 1 cent and as a result, they sell more items to the consumer. |
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choco1154
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they use it to make the items look cheaper. 24.99 seems less than 25 because in 24.99 u just see the 24. |
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Curios G
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Marketing techniques. Makes the buyer believe it is a lot cheaper when it really isn't that much cheaper. |
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Blake Summers
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Like an ipod i saw at the store was 299$ I would just say 300, but they say $299 because it makes it sound cheaper when u first hear it. |
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Hella Kitty
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Because although something priced $1.99 is only one cent different than something priced $2.00, it looks a dollar cheaper and people buy it. |
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My banana in your republic
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because it gives the illusion that the item is cheaper, especially .99, the consumer thinks "omg, its under a buck! this is an awesome deal". if it was 1.00 people react "meh, its not worth a buck" |
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darrenmccbe
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its a phsycological thing, when u buy something for $99.99 you feel better that u didn spend $100, although its much the same you feel better about it |
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SPROOOGAZ
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Bahaha i totally agree on this one!
They try to make things look cheap.
Only $8.99!
when really its basically close to ten bucks.
It's supid, but i guess its marketing! |
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wazat
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there is a large group of people that are "fooled" into thinking that the item is almost a dollar cheaper.
Children and the ignorant are fooled every time.
Be proud you aren't fooled , and "round up "
Thank you for using Yahoo answers and have a great day !! |
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100% Organic Snarkâ„¢
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I read somewhere that it's partly a psychological strategy -- when you see the first number in the sequence, you think "oh, it's only a dollar", and the other two barely register to your brain as being practically another whole dollar.
WalMart's prices almost always end in a "7", like "$6.97", but it's the same strategy.
Same with gas prices, except they go one decimal place further "$3.99 9/10". That fraction is pretty meaningless, but it looks really cool on the sign.
It's really ridiculous when you look at car dealerships' ads -- a truck that costs $40,000.00 actually looks MUCH more expensive than one advertised as $39,990. |
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juditutie
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gives the illusin to the buyers that the price is lower. |
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wolfsmoon71
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It's a mind trip, it makes you think it's cheaper. Same with the 9/10s on gas. |
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buttonmoon
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Because otherwise items couldnt be advertised as being less than £1, £10 etc. Its all pychological to make people think they are getting a bargain. |
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shorty_94
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most store owners do that to make the buyer think that it is cheaper because when it has (.99) in it..... it means its cheap, but its a way for the owner to get more money. it's also done like that because its easier to do .99 at the end of everything rather than .44 because you usually have quarteers in your pocket. |
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kate
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Psychological ,
Most people read the first numbers ,
The higher first number Lowers the chance of a sale .
> |
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i hate my "job"
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because after you pay for it, its rounded up after taxes. |
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