Paxo
|
As last thing, psychological - it's like saying something costs 5 - 9 - 9. It sounds better than saying five HUNDRED and NINETY nine! |
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livinfortheweekend
 |
So if something is £99 they can advertise it as being UNDER £100. It works on most people..... |
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eateroftartancolouredsmarties
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It's a physcological ploy.
19.99 seems less than 20.00. |
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Big T
 |
It's so shopkeepers can keep the 1p coin in circulation. |
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lucyandtj
|
it give potential buyers the illusion that it is cheaper. |
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abuser
|
so people have stuff to put in their copper jar |
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Mr Mills
 |
This is to stop theft at the cash point - by forcing the operator to open the till to give change. It also has the psychological effect of making things look cheaper. |
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Elle
|
the first girls right, but i just look at 19.99 and go, ok, 20. so really their little trick does not work on me. |
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kerridwen09
 |
At university, we saw this old marketing film that said it made people think they were getting a bargain to see ".99" at the end of a price rather than the even ".00"
I disagree but I guess it still stands true. |
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Quixotic
|
There are 2 famous urban legends about it, either one could be true.
One is that it was to force the cashier to open the register and give change, so they would have to ring it up, and couldn't just pocket the bill.
The other is that a newspaper publisher convinced merchants to do it. This left people with change in their pocket to buy a newspaper, back in the days when boys stood in the street selling them. |
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alatoruk
|
I was told many years ago it was to do with making for easy VAT returns. of course this was in the days of 15% vat, so 86p became 99p, now we are at 17.5% i think the "looks cheaper than it really is" explanation is most likely why it carried on, if VAT was the original reason. |
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sexie
|
so the 9.9% sales tax can be added. it would be easier to round off to the nearest $ but that would mean more work---for everyone! |
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Felecia F
|
Its a Marketing tag your brain will always round down to the 1st set on numbers so if its $49.99 your brain wont process it as $50 it will process it as $40 and thus you are able to rationalize your purchase as a deal. |
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carrliadiere
|
To make them seem cheaper.
M&S famously rounded all the prices up though, and probably saw a massive rise in profit due to all those extra pennies. |
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Fipa
 |
For the decimal number do not be higher...BUT IT'S JUST FOR A CENT! Stupid people, who wants to make the consumer stupid. |
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?
|
To EaterOfTartanColoredSmar:
"It's a physcological ploy.
19.99 seems less than 20.00"
19.99 doesn't just SEEM less than 20.00, it IS less. But you're right in it makes people think they will get change back from their $20 bill. |
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MLL
|
To make it less than the next whole dollar. It's more attractive knowing you aren't really paying the $10.00 and you are only paying $9.99. |
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18/M/Scotland
|
i throw anything less than 10p away. im weird that way, hate having loose change !!! |
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Kevin C
|
Like most folks have said, it's a marketing ploy to make you feel like you're paying less, like posting $7.99 makes you think you're paying $7 instead of $8.
When I was growing up, my father always told me if I see anything above .00 at the end of a price, round up. Even if it's like $7.23, round up to $8. So, I haven't really had the problem of looking at the price and thinking less than what it is. If anything, I overcalculate.
When it comes down to it, the issue is mental. |
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Marty S
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damn thats eerie
Dante, Clerks |
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Darren C
|
I think it's about thinking that you're getting a bargain, but I'd prefer it if things were rounded up. |
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Snot Me
|
because .99 is less than a pound. |
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Josie
 |
It's for tax reasons. The extra penny changes the tax calculations. |
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caroline1409f1
|
Not everything does. Lots of UK shops round up to the pound and some prices are even 10p, 20p, 25p, 49p etc... |
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