2007-03-22 15:35:56 · 16 answers · asked by chihuahua mx 1 in Cars & Transportation ➔ Commuting
It's a marketing gimmick, makes the price seem lower (as in "under $20!!" when something costs $19.99). It's misleading, since you always end up rounding up anyway. You can't charge (or pay) 9/10 of a cent!
(Yes, it's 1/10 of a cent, not of a dollar!)
2007-03-22 15:40:05 · answer #1 · answered by Bad Kitty! 7 · 0⤊ 1⤋
It has always been that way. Since the begining. It looks better when you see the smaller number than if they rounded up. Funny thing- I worked for a gas station-convenience store as a manager. They are only making 1-2 cents per gallon. It is all the other stuff in the store that you buy that makes the money for them:)
2007-03-22 22:39:30 · answer #2 · answered by Shawn 4 · 0⤊ 0⤋
Most people don't factor in the 9/10ths, so they get the idea fuel costs less, although, that one penny does not amount to a lot on one fuel stop, maybe 25 or 30 cents, but the seller makes a few bucks off of the oversight, same as a car dealership, a car selling for 4999.99 is not nearly as much as 5000 dollars. It is a sales gimmick.
2007-03-26 08:05:24 · answer #3 · answered by Heather 3 · 0⤊ 0⤋
Because that's the way they've always advertised it. In the 50's a tenth of a dollar actually meant something. My Dad would drive around looking for a station that was 1/10th lower. Now that pricing is a farce perpetrated by the nonsense notion that we actually perceive the price to be lower by 1/10th.
2007-03-22 22:50:24 · answer #4 · answered by Nan one one 2 · 0⤊ 0⤋
Because rounding up would make the price look higher. It's like the $2.99 instead of $3.00 concept.
2007-03-22 22:38:10 · answer #5 · answered by OrangeCharlie 5 · 0⤊ 0⤋
Marketing ploy to make the consumer think they are getting a better price.
2007-03-23 11:40:18 · answer #6 · answered by Danno Soprano 2 · 0⤊ 0⤋
Sales gimmick, we're full of them in the good ol U$A....can't help wondering what will happen if the penny really does go extinct...currently costing more than its worth to produce.......
2007-03-26 13:31:54 · answer #7 · answered by Rick 3 · 0⤊ 0⤋
Sales and marketing. Because when we see gas at 3.25 99/100 cents, we say $3.25, not $3.26. Bfd, I agee on that point.
2007-03-22 22:38:13 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Same reason applainces are $299 or automobiles are $21,999..to make them appear cheaper. Mind games!
2007-03-22 22:39:12 · answer #9 · answered by njmarknj 5 · 0⤊ 0⤋
you americans complain about your prices, try buying motor fuel in Ireland! i wish our population was like yours though, at least you have to sense to question ridiculous price increases.
2007-03-22 23:02:17 · answer #10 · answered by guy 1 · 0⤊ 0⤋