2006-09-04 03:52:14 · 21 answers · asked by levelheaded 1 in Business & Finance ➔ Other - Business & Finance
As I understand this there are two reasons. One psychologically if we see £3.99p we think it is £3 unless we make a conscious effort to say to ourselves it is £4. The other reason is that when everything was dealt with in cash the fact that the shop assistant had to give you 1p change meant they had to open the till. This often meant they had to ring up the sale and discouraged them from just slipping the money in their pockets.
I suppose you know that most "slippage" (that is what the retail trade calls losses of goods) is done by shop staff rather than customers shop lifting
2006-09-04 03:58:50 · answer #1 · answered by Maid Angela 7 · 1⤊ 0⤋
Yes £1. Give that lady 1p .
It is a psychological ploy pricing items at 99p (only one example) It makes the buyer believe that they have a bargain, having paid under £1 for said the item.
2006-09-04 03:58:37 · answer #2 · answered by Anonymous · 0⤊ 0⤋
As well as the psyhological thing (which i don't buy but still). Someone told me that it was so that shopowners could tell if there staff were stealing. If something cost a pound then the employer could pocket it, but if something cost 99p then they had to ring it up for the change, hence the reason a till makes a diffenent noise when something is rung up to the noise it makes for a No Sale.
2006-09-04 04:00:12 · answer #3 · answered by Seba 1 · 0⤊ 0⤋
It has always been thus.... even when using £sd, things used to be priced at, for example, 5s 11d rather than 6 s
2 reasons
1) psychologically 99p looks like less than £1.00 so it looks like you are paying less
2) someone once told me that it reduces theiving. if you have to make change, even for 1p, you have to use the till, where as if you have a round figure people dont need to get change, and it is easier for the cashier to hide a transaction
2006-09-04 03:58:11 · answer #4 · answered by Vinni and beer 7 · 0⤊ 0⤋
2 reasons :-
1) Psychologically 99p sounds a lot less than £1, £9.99 sounds so much cheaper than £10 etc. Sounds crazy, but it works!
2) Reduction of theft by sales assistants - They are forced to give change, making them openly put the money in the till instead of their pockets!
2006-09-04 03:54:26 · answer #5 · answered by Perkins 4 · 0⤊ 0⤋
Before EPOS, selling something at 99p forced the clerk to open the till.
2006-09-04 03:57:51 · answer #6 · answered by Boris 5 · 0⤊ 0⤋
This is down to simple retail pyscology.
more units will sell if the price is 3.99 rather than £4 so the penny they take off actually increses the overall profit whilst shinking the profit margin for a single unit.
Visit my site www.onepoundplease.co.uk
2006-09-04 04:01:35 · answer #7 · answered by shamone_mo_fo 1 · 0⤊ 0⤋
It is a psycholgical trick to make the buyer believe they are spending less than the rounded up price.
£99.99 is less than £100 but not in any real sense.
2006-09-04 03:55:06 · answer #8 · answered by Anonymous · 0⤊ 0⤋
u never told us ur idea but ill tell you mine lol they should bring out a 99p coin that way we wouldnt end up wiv lots of copper in our pockets lol what u think of that lol
2006-09-04 03:58:39 · answer #9 · answered by dina_170606 2 · 0⤊ 0⤋
If this irritating practice was abandoned we would have no need for redundant coinage like the 1p and 2p coins which clutter up our houses and cause holes in pockets.
2006-09-04 04:14:46 · answer #10 · answered by Anonymous · 0⤊ 0⤋