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.
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).
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?
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...
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.
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..
