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Silveraura

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17th September, 2009 at 05:21:55 -

I've looked this up on Google, I've asked almost everyone I know, and I think about it every day I go into work or to the store or something. Does anyone really have any idea as to how exactly or why exactly prices generally always end one dollar lower then their expected price, and instead tag on the end 99 cents, 95 cents, or 50 cents?

Sounds like a stupid question because I feel like everyone knows something I don't. I used to think that it was to avoid tax on the extra dollar, but the more I look up, the less likely that seems. Anyone?

 
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Ricky

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17th September, 2009 at 05:35:08 -

well, i think it's hoping someone will see something that is 3.50 and think to themselves, "hey $3."

 
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UrbanMonk

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17th September, 2009 at 06:09:53 -

It's exactly like Ricky said. It's one of those gimmicks to make you think a price is lower than it is.

It doesn't really work anymore though since everyone is used to it, so now it's just something they do because people expect them to do it.

 
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nim



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17th September, 2009 at 09:20:28 -

Some people might tell you that it's to keep small coins in circulation but that's bollocks. It's just to make the price seem less than it is. In all honesty it does work with some people.

 
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VIP MemberThe Cake is a Lie
17th September, 2009 at 09:26:20 -

Also, if you sell something for $49.95, you can state that it's "UNDER $50!!!", and subconsciously guide people towards your product.

 
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Silveraura

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17th September, 2009 at 10:02:13 -

*sigh* I was actually hoping for a really cool elaborate reason like something that happened in the past that made it that way.

It just seems really weird that EVERYTHING is like that. Not just expensive stuff and not just a hand full of companies. They ALL do it... -.-

 
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17th September, 2009 at 11:20:38 -

its for the same reason gas prices have 10ths of a cent.

 
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Spitznagl

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17th September, 2009 at 11:32:36 -

http://en.wikipedia.org/wiki/Threshold_price-point
Reading this article, I feel like economic experts think we're all idiots.

 
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Flava



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17th September, 2009 at 11:54:12 -

It's because $3.99 sounds like $3 when actually it's $4 - means you're more likely to pay it.

 
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17th September, 2009 at 14:24:52 -

I could never sell something with a price like that, just seems like such a low desperate place to be.

 
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17th September, 2009 at 15:14:11 -

I wish they would make the prices so that with sales tax it works out to dollar amounts with no change. Unless of course the stuff is less than a dollar.

 

  		
  		

Clubsoft

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17th September, 2009 at 18:05:24 -

Slightly different subject, but I wish shops in the US/Canada listed items with sales tax/VAT included like they do in the UK.. it's rather confusing to go into a dollar shop where nothing costs a dollar, is it just me that finds that really stupid?

 
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17th September, 2009 at 18:10:24 -

It is rather silly.

 

  		
  		

Muz



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17th September, 2009 at 18:13:38 -

1. It's just to get you to think that it's cheaper than it is. When people add up prices, most of them only add the digits past the decimal point.
2. It makes the price look more 'accurate'. People are more likely to 'trust' something that's $2.89 than $3.00.

It works. Seriously, it does. If it didn't, then people won't do it. It's also like that other trick where they play slow music at supermarkets to make you walk slower (and browse through more stuff) and where they keep the kiddie stuff at kiddie eye level and the adult stuff at adult eye level (with the stuff targeted at females a shelf lower).

 
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Ricky

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17th September, 2009 at 18:57:38 -

Well I'm a bit opposite, I hate change so i view prices in how many dollars I have to give or break. So in my mind, $3.25 = $4. Although, now that i have a credit card, i don't have to bother with change.

 
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