How come the price of everything ends with $.99 or $.59? ($19.99, $28.99) why can't they ever round it to $20?

Answer 1

Because this makes the clerk open the cash register and give change,most people are so chinsey that they will wait for a penney change.If the clerk does nothave to open register it would be easier for them to steal from business,that is the thinking anyway.

Answer 2

I work in retail so I feel Im The best one to answer this. Its a selling technic. It actually works. People see the 19 before they see the .99 if we rounded it up to 20 they see it as a higher amount. The reason some product ends in .59 or so is because of price shopping. Walmart will try to beat target and lower it .1-.10cents cheaper. At my store we put up signs 2 for $4. You know why?Because People are tricked into thinking they have to buy 2 to get the sale price but in realitiy even if you bought one its still 2 dollars at my store. My department brings in multimillions each year...those 2 for displays can really make a difference when you add it all up. And the 19.99 will always sell better then the $20. On another note in my store if a product ends in an even number like example 19.98 then we are discontinuing that product most likely and has or will go clearence.

Answer 3

Studies show people will choose an item that is 19.99 over the same item that is 20.00 It's a proven. It has to do with 19 and 20. People don't see the 1cent difference they see the 10 and 9 verse 20.

Answer 4

Market research at one point proved that more shoppers would go for the same item on a shelf priced at $19.99 than at $20. It felt more like a "bargain" because one was priced lower than the other...even by just a cent.
Plus, it's always the difference between cents to dollars (99 cents) or bigger sums like your 19.99 versus 20 or 29.99 versus 30.

Answer 5

Psychological precious, science says people are less willing to make purchases at even dollar amount. My theory (which can't be proven). For Example, Little lamb chops goes to buy a chocolate bar- and it costs .69 cents, she gives the owner Kulpreet, 1 dollar . 2 things happen

1) She gets the chocolate bar

2) She gets money back

Effect?

The person doesn't take ALL her money (1 dollar), she gets "SOMETHING" (.31 cents + a Mr. Big) therefore making her feel great (the want- chocolate bar) and (the need- security- some money back)

End result- She feels satisfied with Mr Big and secure with the extra change- which will lead to her returning to that store- hence thank you (for buying my bar) and come again ( with that change i gave you)

Why do we love walmart? Best buy? Taco hell? They all do it- But gee Jesus, what about dollarstores you may ask? Well Mary, They use the opposite technique instead of saying "One candybar for 69 cents, we'll give you 2 for a dollar" This would essentially mean "thank you (one candy bar+ the 1 dollar) and come again (that extra candybar)

Answer 6

Even thou its obvious it still looks less like when its UNDER $20 (19.99) or when you bulk buy like if you brought like 4 items .99 it then will round it down its just a stactical marketing ploy. But there used to be the one cent not too long ago

Answer 7

This is because $19.99 sounds a lot less than $20.00. You may not realize it, but you fall for their marketing game. Everyone does. MOST Americans hear nineteen ninety-nine and round DOWN to nineteen in their heads subconsciously. When you are analyzing it, like right now, $19.99 may not sound so much less than $20.00, but if you were in a store buying something, your subconscious would believe it to be much less.

Answer 8

A retail gimmic to get another dollar out of the customer because the average person will scan something in their brain as the main number like the $1.99 is associated with $1.00 rather than $2.00.
Same thing as a "going out of business sale"..there are a million retail tricks to squeeze a dollar out of consumers.

About time someone asked a good question tho! Way to go!

Answer 9

It is PURE psychology.. They are playing with the minds of people and 99.9% of the people fall for it.. If you look at the price of something and it is $.99.. doesn't that sound/look better than $1.. when a person sees $.99, they do NOT think of it being a dollar but $.90 plus cents and it is more appealing (TO THEM.. NOT to me) psychologically.

For me.. when I see a shirt for $5.99 and someone asks me how much was that shirt, I would NEVER say $5.99 but would say... $6.50.. which is the price plus the tax.

Yes.. It does piss me off to see how people are taken advantage of that way but at the same time.. if they are dumb enough to fall for it.. then they deserve to be cheated.

Answer 10

Because when people see the 19 in $19.99 they tend to get more excited as opposed to seeing $20.00.