Was just wondering, why the hell do companies sell products for like £9.99, or £39.99 or whatever. Why not just round it up to £10. Is there a reason for this or do they just like annoying us with 1p change?
2007-01-04 09:26:12 · 5 answers · asked by ? 1 in Business & Finance ➔ Other - Business & Finance
It is psychological. 9.99 is less than 10.
2007-01-04 10:45:09 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Strangely enough people round down, not up. They see 9.99 as 9.00 not 10.00. I didn't believe this myself until I worked in a store that had a $2.99 sale. Someone bought 5, and when I told them it was $15 they wanted to know why it was not $10.
I agree with you though, it is a royal pain.
-Dio
2007-01-04 09:35:49 · answer #2 · answered by diogenese19348 6 · 0⤊ 0⤋
It's a marketing tool. It suggests that you are getting a deal. I don't really understand it myself, but I know it works. I work in retail, and it seems that I am more likely to make a sale if I tell the customer the price is $9.99 instead of $10.00.
2007-01-04 09:36:07 · answer #3 · answered by Zorlinda 6 · 0⤊ 0⤋
Pyscological merchandising.
When you see gas priced @ 2.25 9/10 and you are asked how much you paid, do you ever mention the 9/10? Not likely.
The only thing most people remember is 2.25.
One can still advertise a price, under $10.00, when it is $9.99.
It plays with our minds.
2007-01-04 09:38:19 · answer #4 · answered by ed 7 · 0⤊ 0⤋
I agree with the other, it is psychological. A second reason has gone away with sales tax (aka GST in some places).
Let's say an item costs $1. It would be easy for the cashier to simply put the $1 in his or her pocket. If the item costs $.99, the cashier has to open the register for a penny change.
2007-01-04 09:50:31 · answer #5 · answered by Adoptive Father 6 · 0⤊ 0⤋