Why Price is 9.95 | 26 Jul 2009
 

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.

Re: Why Price is 9.95 | 26 Jul 2009
 

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

Re: Why Price is 9.95 | 26 Jul 2009
 

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).

Re: Why Price is 9.95 | 26 Jul 2009
 

Bingo

Re: Why Price is 9.95 | 26 Jul 2009
 

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?

Re: Why Price is 9.95 | 26 Jul 2009
 

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...

Re: Why Price is 9.95 | 26 Jul 2009
 

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.

Re: Why Price is 9.95 | 26 Jul 2009
 

yeah that is also a good reason..

Re: Why Price is 9.95 | 26 Jul 2009
 

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..

Re: Why Price is 9.95 | 26 Jul 2009
 

So, I won ?! :happy:

BTW, Nice answer(s) xpi0t0s.