Why not simply $2.00 rather than $1.99????
2007-03-14 18:56:05 · 11 answers · asked by William K 2 in Social Science ➔ Economics
To fool you in to thinking it's cheaper. It's a mind game.
2007-03-14 18:58:18 · answer #1 · answered by Anonymous · 1⤊ 2⤋
tradition, and they can get away with it.
Many years ago (1930's) some (if not all) states had "tax mills" These were tokens that were used in dealing with sales tax on less than a whole dollar. Prices averaged low enough and wages were low enough that rounding the sales tax to the nearest penny was significant.
I can remember my grandfather's box of Missouri Tax Mill tokens. They essentially looked like little poker chips.
Note this is also where the tratdition of a coupon having 1/20 cent cash value comes from. 1 mill = 1/20 cent.
2007-03-14 19:02:15 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Because that 1/10 of one cent adds up over time and they make more of a profit.
2007-03-14 19:02:18 · answer #3 · answered by Anonymous · 0⤊ 1⤋
It was first done as a way to lure drivers to one gas station as opposed to another because of the appearance of lower prices (it appeared to be $.01 cheaper, when it was actually only $.001 cheaper. It still remains because any gas station that doesn't do it will look like the more expensive one in town.
2007-03-14 18:58:57 · answer #4 · answered by Mickey Mouse Spears 7 · 0⤊ 2⤋
all those 9/10 add up to big bux in the pockets of the companies and you or i not even think twice about it.
2007-03-14 18:59:08 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Originally because of taxes. But now, it has become ingrained in society why change it. They would all have to buy new signs also.
2007-03-14 21:47:31 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Just so that they can say it is under two dollars. BTW where can you get gas for 2 bucks a gallons these days?
2007-03-14 19:00:25 · answer #7 · answered by ? 6 · 1⤊ 2⤋
It's a conversion issue. Some foreign currency is a fraction off of our own? I don't know!
2007-03-14 18:58:55 · answer #8 · answered by Anonymous · 0⤊ 3⤋
It's the Metric System they warned us about in the 70's. They are FINALLY doing it!
eeeeeeeeeeeeeeeeekkkkkkkkkkk!
2007-03-14 18:58:36 · answer #9 · answered by Debi in LA 5 · 0⤊ 3⤋
To squeeze that extra penny without most people realizing it.
2007-03-14 18:58:35 · answer #10 · answered by Anonymous · 1⤊ 2⤋