Just wondering why most products are priced xx.99? 9.99? 29.99? Even computers that are 1499.99? People say, a product priced at 9.99 rather than 10 dollars seems a lot cheaper to consumers than just a penny but I disagree it just seems like a penny less. What is the logic to this and/or why is it used?
2006-12-19 04:25:22 · 3 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
Pure Psychology. If something is priced at $14.99, the 14 is what sticks in you mind not the fact that it is only a penny from 15. My wife thinks this way. From early on, I trained myself to see it as $15. Look at how gasoline is priced that way. Its a game to work on people's brain and it does influence how people look at prices. Incredibly, its effective. You just have to learn to ignore it.
2006-12-19 04:32:08 · answer #1 · answered by John Galt 3 · 1⤊ 0⤋
It is because it seems cheaper. That's also why gas prices are always x.xx 9/10 (to 9/10ths of a cent), and why realtors will always have their sellers price a house at 249,500 rather than 250,000.
If you noticed, Wal-Mart always have their items priced at x.97, rather than x.99. While two cents won't mean much at all, it will stick in your mind as being cheaper than x.99.
2006-12-19 04:56:07 · answer #2 · answered by jseah114 6 · 1⤊ 0⤋
I'm afraid the "seems cheaper" answer is the real one although as you point out it isn't really logical. Or is it really a ploy by the mint to keep the demand for the penny up?
2006-12-19 04:30:56 · answer #3 · answered by old timer 1 · 1⤊ 0⤋