Why Price is 9.95 | 26 Jul 2009

shabbir's Avatar, Join Date: Jul 2004
Go4Expert Founder
Many times we have pricing like 9.95 or 99.95 and one reason is it looks lesser to the customer but what was the main reason for this practice to start.
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SaswatPadhi's Avatar, Join Date: May 2009
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It's a practice to force employees to open the cash registers instead of simply pocketing the bill
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SaswatPadhi's Avatar, Join Date: May 2009
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It started at Bill’s Texaco in Waco, Texas during a price war. I say it’s a much older management technique to force employees to open cash register drawers for each transaction (making simply pocketing a bill more obvious).
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shabbir's Avatar, Join Date: Jul 2004
Go4Expert Founder
Quote:
Originally Posted by SaswatPadhi View Post
It's a practice to force employees to open the cash registers instead of simply pocketing the bill
Bingo
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xpi0t0s's Avatar, Join Date: Aug 2004
Mentor
These are employees who are smart enough to figure out that they could just pocket bills, but not smart enough to figure out that they need to carry a bunch of 5 cent pieces?
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mayjune's Avatar, Join Date: Jun 2009
Invasive contributor
Hmmm and i thought it was cause 99.95 and 100 were in different tax range, thus to be in lower range they keep it like that...
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xpi0t0s's Avatar, Join Date: Aug 2004
Mentor
I thought it was because £39.95 is as good as £40, but £40 looks more expensive - shopper psychology - it's "UNDER FORTY QUID" - well, no, it IS forty quid.
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mayjune's Avatar, Join Date: Jun 2009
Invasive contributor
yeah that is also a good reason..
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rik625's Avatar, Join Date: Jun 2009
Go4Expert Member
Yea...In US most of the prices tags are like..9.99 and 29.99...I mean most of the people dont care about the extra cent to add to make ot round figure..but still it goes on like this..

I say ...A figure like $99.99 looks lesser than $100.00.. (...my guess..lol) so it appeals buyers that its less than $100 ..hence they are tagged as such..
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SaswatPadhi's Avatar, Join Date: May 2009
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Quote:
Originally Posted by shabbir View Post
Bingo
So, I won ?!

BTW, Nice answer(s) xpi0t0s.