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Why Price is 9.95 | 26 Jul 2009

Discussion in '$1 Daily Competition' started by shabbir, Jul 26, 2009.

  1. shabbir

    shabbir Administrator Staff Member

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    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.
     
  2. SaswatPadhi

    SaswatPadhi ~ Б0ЯИ Τ0 С0δЭ ~

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    It's a practice to force employees to open the cash registers instead of simply pocketing the bill :)
     
  3. SaswatPadhi

    SaswatPadhi ~ Б0ЯИ Τ0 С0δЭ ~

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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).
     
  4. shabbir

    shabbir Administrator Staff Member

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    Bingo
     
  5. xpi0t0s

    xpi0t0s Mentor

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    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?
     
  6. mayjune

    mayjune New Member

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    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...
     
  7. xpi0t0s

    xpi0t0s Mentor

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    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.
     
  8. mayjune

    mayjune New Member

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    yeah that is also a good reason..
     
  9. rik625

    rik625 New Member

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    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..
     
  10. SaswatPadhi

    SaswatPadhi ~ Б0ЯИ Τ0 С0δЭ ~

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    So, I won ?! :happy:

    BTW, Nice answer(s) xpi0t0s.
     
  11. mayjune

    mayjune New Member

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