why 99cents and not $1. (and $4.99 $6,995 / $14,995 etc)

[Dwarfer]

hi this has bothered me for a long time, i believe its because they're fooling consumers into thinking it is cheaper than it is (coz you see the unit figure FIRST (4.99) so it looks $2 when its really 1 cent short of $3. do they profit more by doin this, is it fair, don't they care about us?

 

[Impotence]

don't they care about us?

uhmmm, they care about our wallets and thats about it. The whole point of a business is to make a profit, so i don't see how we can complain.

anyway, here's an idea... just do what i do, if it says £4.99, round it up and treat it as £5 and stick the penny in a jar when you get home! (it builds up faster than you would think)

 

[Matt555]

I must saw Dwarfer you seem to hate businesses - but:

1) They're there to make money,
2) Prices like that are a psychological thing, you see £4.99 and it doesn't seem like only £0.01 short of £5 - like lots of things in this world, it's not there to deceive, it's there because we notice the £4 - not the £0.99.

 

[Big B]

Even/odd pricing. It's part of economics. People tend to think it's a good deal if you sell it for .99c instead of $1.00. It's very effective in clearing out product or making a sale. Companies aren't necessarily being greedy, but as they are for-profit businesses, the even/odd pricing makes the product more attractive for purchase. Another strategy: something like 2 for $3.00. It makes you feel like you're getting a deal, at least compared to running them $1.50 each.
I work retail, and put some of our excess stock on an in-store sale. I'm amazed at how often slapping a tag on a product with barely a drop in the price will make it fly off the shelf. From what I see, you almost can get by with putting a tag on it and let the consumer mentality take flight. "Oooh, there's a tag! We're saving $$$$$$!" when they're simply saving a few pennies.
Short answer: it's the way business is done because in order to stay in business, you must turn a profit.

 

[WWR]

Yeah, my old job did something similar, we put on sales a lot, granted there were some great deals, but some games didn't even drop by a penny, they just got a sale tag. And people still bought it.

 

[Addis]

Here we go again...

No matter what you think, 99c is cheaper than $1. $4.99 is cheaper than $5. Every person that I know of just thinks of the price rounded up, so if you're stupid enough to actually buy it on the merit of being 99c instead of $1 then you deserve to be fooled anyway IMO.

 

[Sniper]

uhmmm, they care about our wallets and thats about it. The whole point of a business is to make a profit, so i don't see how we can complain.

anyway, here's an idea... just do what i do, if it says £4.99, round it up and treat it as £5 and stick the penny in a jar when you get home! (it builds up faster than you would think)

Lloyds TSB do that for me, so if I spend £4.25, 75p goes into savings account.

 

[donkey42]

i think it's a way to con people into buying stuff, but they don't get me, i've wised up to the games they play

 

[zeus]

If you had a penny for every product you had ever bought you'd be rich!
I dont think its anything to do with trying to make stuff seem cheaper. Ive never looked at something for £4.99 and thinks "thats £4.99". Its a fiver to me!

I suppose its £4.99 and not £5 simply by tradition from when that penny actually counted.

 

[Impotence]

It does seem to trick most people, and to be honest i have been caught out by it a few times (when I'm not thinking straight, after a few drinks) when buying munchies etc

 

[WWR]

I always look for what the best deal really is, I knew there was a reason Maths was a good subject to have a knack for. :P

 

[Swansen]

Even/odd pricing. It's part of economics. People tend to think it's a good deal if you sell it for .99c instead of $1.00. It's very effective in clearing out product or making a sale. Companies aren't necessarily being greedy, but as they are for-profit businesses, the even/odd pricing makes the product more attractive for purchase. Another strategy: something like 2 for $3.00. It makes you feel like you're getting a deal, at least compared to running them $1.50 each.
I work retail, and put some of our excess stock on an in-store sale. I'm amazed at how often slapping a tag on a product with barely a drop in the price will make it fly off the shelf. From what I see, you almost can get by with putting a tag on it and let the consumer mentality take flight. "Oooh, there's a tag! We're saving $$$$$$!" when they're simply saving a few pennies.
Short answer: it's the way business is done because in order to stay in business, you must turn a profit.

Yep, exactly, people see $0.99 and think they are getting a deal, 4.99 doesn't look like $5.00

 

[Swansen]

Even/odd pricing. It's part of economics. People tend to think it's a good deal if you sell it for .99c instead of $1.00. It's very effective in clearing out product or making a sale. Companies aren't necessarily being greedy, but as they are for-profit businesses, the even/odd pricing makes the product more attractive for purchase. Another strategy: something like 2 for $3.00. It makes you feel like you're getting a deal, at least compared to running them $1.50 each.
I work retail, and put some of our excess stock on an in-store sale. I'm amazed at how often slapping a tag on a product with barely a drop in the price will make it fly off the shelf. From what I see, you almost can get by with putting a tag on it and let the consumer mentality take flight. "Oooh, there's a tag! We're saving $$$$$$!" when they're simply saving a few pennies.
Short answer: it's the way business is done because in order to stay in business, you must turn a profit.

Yep, exactly, people see $0.99 and think they are getting a deal, 4.99 doesn't look like $5.00, its looks like $4.00