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Many shops have prices set just under a round figure, e.g. $9.99 instead of $10.00 or $99.95 instead of $100.00 . It is assumed that this is done because the price seems lower to the consumer. But this is not the reason the practice started. What was the original reason for this pricing method?

2006-09-12 04:39:29 · 5 answers · asked by anniesj 1 in Science & Mathematics Mathematics

5 answers

the employees at the shops used to steal the money when the prices used to be in round figures. However, as the prices were made just under a round figure, they had to hand the change back to the customer. To do this, they needed to open the cash box, for which they needed to make an entry in the cash register.
Hence prevention of stealing was the main reason for this practice.

2006-09-12 04:44:49 · answer #1 · answered by the_answerer 2 · 2 0

The original reason is that people used to charge you exactly what the item was worth.

2006-09-12 11:45:54 · answer #2 · answered by DefenderOfTheMeek22 4 · 0 0

How do you know this is not the reason.
I'm 50 years old and have always understood it
to be a marketing ploy.

2006-09-12 11:45:37 · answer #3 · answered by Anonymous · 0 0

To make a meagre extra profit?

2006-09-12 11:44:09 · answer #4 · answered by Hobby 5 · 0 0

I think it is because of the tax brackett it puts it in

2006-09-12 11:42:24 · answer #5 · answered by autumnbrookblue 4 · 0 0

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