Why not 10.00??

Question

Why do things cost $9.99? Or $9.49? I mean. Why not $9.50 or $10.00?

Answer 1

optics, the perceived difference between 9.99 to 10.00 dollars is greater than 10.01 to 10.00, irrational but, that's why they do it.

Answer 2

It's a merchandising trick that is used to trick the mind into thinking "it's a great deal". It began many years ago when stores began to really fight for customers. One store would sell for $1.00, but the one across the street would sell for .99. Way back then, that extra penny could buy you a handful of candy! Also, when sales taxes became the norm, the .99 or .49 on an item would let the price be a rounded out number after sales tax was added, which kept many people from having to carry around pennies. Now, of course, it's just the trick and the sales taxes have nothing to do with it any more. A person's mind will see the 9.99 on the price and call it a deal when across the street it says 10.00. It's just our way of thinking we're saving pennies, which add up over time to a lot of money (if you really save them!) The auto industry found that if a car was listed at 10, 999 it sold faster than the exact same car listed as 11,000, because we've been trained to save money. You'll find that some things will end with .98 in one store if it's listed as .99 in another. It's just a brain tease that we've all become accustomed to and it sure does work.

Answer 3

It's a psychological thing. It sounds ridiculous, but people think they are spending less than they are. $9.99 isn't 10 dollars. The thought is that people see the 9 at the front of the number and don't think 10 dollars. It works the same way with gas prices. It may say $2.80 for gas, but you are actually paying $2.809 per gallon.

Answer 4

It is an advertising gimmick, but it actually goes back to the olden days. It had something to do a penny buying a lot more back then & smaller items such as penny candy were placed at the check-out counter to entice buyers to impulse shop. The tradition just carried on. I remember reading this in a Childcraft book or something like that when I was young.
Of course we still have small items up at the check-outs for impulse shopping, but everything just cost closer to a dollar nowadays.

Answer 5

it psychological. Even though there is only a 1 cent difference between $9.99 and $10 the brain sees a $1.00 difference because we focus on the first number and then to disregard the rest of the numbers.

Answer 6

Because people have a way of cutting off the change, so instead of saying to themselves - this costs $9.99, they'll say - this costs $9.00. That sounds much cheaper. lol

Answer 7

I'm sure most people have asked this question before, and the answer is usually the same, it's most likely that the penny difference sounds cheaper than the rounded off whole number.

Answer 8

These things are related to mental illustration.
When you see $9.99, your mind assumes that it is very much less than $10.00
Thus almost all products have such type of prices.

Answer 9

The thought was that the drawer would have to be opened for this transaction, thus proving it. Otherwise, I could pocket the money with no one being the wiser.

Answer 10

that's a sales technique. you may think that it's a good buy because it's less than 10 or 9.50.