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?
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?
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).
Disclaimer: Any sarcasm in my posts will not be mentioned as that would ruin the purpose. It is assumed that the reader is intelligent enough to tell the difference between what is sarcasm and what is not.
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.