Why is it 4.99 instead of 5 dollars?
Posted 1/10/15
Seriously, why stop at 99 cents?
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Posted 1/10/15

PeripheralVisionary wrote:

Seriously, why stop at 99 cents?


It's called psychological pricing.
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Posted 1/13/15 , edited 1/19/15

eyeofpain wrote:


PeripheralVisionary wrote:

Seriously, why stop at 99 cents?


It's called psychological pricing.


Correct. Everywhere does it. 4.99 sounds cheaper than 5.00 so people are more likely to buy it. Thats all there is to it.
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Posted 1/13/15 , edited 1/13/15
Its simply a sales tactic that's proven to work.

Let's say a store sells a item for $20.00
They put up a sale sign and list it as $19.99

No real marginal difference yet studys and real word data proves people will buy it more often then when it was simply $0.01 more.


Edited for a typo
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Posted 1/15/15
I can't believe that physiological pricing works. xD
I mean I know it's proven I just never understood why it truely worked because if I see something for $1.99 I automatically read it out loud as $2 xD Pretty much anything that's 80cents or more I round it up to the highest number.

I guess it just depends on who's reading the price I guess, on which prices they read in which way.
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Posted 1/16/15
The same thing happens to me.
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Posted 1/16/15

snoodles wrote:

I can't believe that physiological pricing works. xD
I mean I know it's proven I just never understood why it truely worked because if I see something for $1.99 I automatically read it out loud as $2 xD Pretty much anything that's 80cents or more I round it up to the highest number.

I guess it just depends on who's reading the price I guess, on which prices they read in which way.


Logically, you may be able to tell the difference, but on a lower level of the brain, the tactic could still be affecting your decisions.
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Posted 1/16/15
It never bothers me since I have to mentally tack on another 70 cents or whatever for sales tax.
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Posted 1/18/15
Fascinating. Here is how I look at things: $19.99 = Tax; $20 =/= tax .... In my experience, I usually run into things placed at the dollar at small vendors (eg: sweets at a college campus; homemade crafts at a fair; etc.)
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Posted 1/19/15
Sadly the lower price is a thing, I remember watching an episode on "Gruen Planet" where the lower price was also picked more often because consumers felt more thought was put into the pricing.
I also suspect online catalogues "with show all items under $5" comes into play.
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