why do they always put 99p on the end of prices?

Question

e.g.
£9.99
£19.99

Answer 1

Looks cheaper to the person looking at the price that is it was priced at £1, I worked in a supermarket for years, you would be amazed the tricks they know so that they can play with your mind.

Answer 2

someone once explained it to me, so here is what they said...it has nothing to do with making the item look cheaper, it is just an old habit that hasnt been changed. Back in the early 1900s clerks would steal money given to them by shoppers. If a person bought something for $4.00 (sorry im American I dont know how to make the pounds sign) some clerks wouldnt bother ringing up the sale and would pocket the money. by making the same item $3.99 (this was obviously before sales tax) the clerk would have to ring it up to give out the change. now with sales tax (at least we have sales tax here, and i assume that other countries do too) the thing is pretty much obsolete, we seldom have to pay dollars with no cents.

good question

Answer 3

Want the real answer? It is done to stop staff theft. If an item costs £10 the cashier could not ring up the item and pocket the money. If it costs £9.99 they have to ring it up because they have to open the till to get the penny change for the customer.

Answer 4

The official reason is that it makes the shop assistant open the till to provide change. If goods are prices at £20.00, the customer is likely to give the right money and the shop assistant could slip this into his pocket (or her handbag). At £19.99, the shop owner makes 1p less profit, but gets to keep it.

Answer 5

Main reason originally is that it appears less. However consumers have worked this out and some pricing is now contrived to look like it’s been genuinely arrived at; so for instance you may price at £19.74. They are part of the psychological resistance to certain price barriers: 99p is better than £1 or £4.99 is better than £5.00 . . . and so on.
It may be worth mentioning that if your pricing is on the wrong side of one of these price barriers you could consider increasing it to very near the next. So for instance if you found your costs meant your unit price must be £32.99 you may find you could increase price your price to £39.99 0r even £49.99. On a larger stage pricing must take into account the competition and what customers perceive a product to be worth. On this note many organisations have moved away from pricing based on cost plus to market pricing. In market pricing you first research what your market will pay for a given product and then set out to manufacture and market it at this cost.

Answer 6

As many have said it is a psychological thing. When comparing prices people group together in 10's - so £1.73 seems about the same as £1.79 and the extra few pence would not impact liklihood of buying. At £1.67 vs £1.73 however £1.67 feels cheaper by more.

Asda pricing policy is not to round up to the 99 but to price at random numbers to make it seem as though they are fighting to save their customers every penny they can.

Answer 7

The reasons are;
1. It is called psychological pricing. It makes a cheaper feeling.

2. To reduce the sales tax

Answer 8

It seems a lot less than £10, or £20 yet is only 1p different .. its all about price barriers and you sell a lot more at £9.99 than £10 .. its just how it is!

Answer 9

It´s a marketing thing... the physcology is that you are paying less than one pound, less than ten pounds etc.... plus the penny change tends to fall down the sides of the sofa, so in twenty years time when you have a good clear out you will probably find enough money to go and spend............... 9.99.........

Answer 10

Originally it was so that the shop assistant had to open the till to give 1p change and couldn't pocket the money - but it also works well as a psychological trick to make the price seem lower.