Why do stores sell things just under a rounded dollar?

It's mostly a mental thing. If it's $49.99, it's NOT $50. Seems kinda silly, but that's the mentallity behind it.

I always heard it is beacuse it gives the illusion that the product is cheaper when it really isnt, whihc I think is stupid because I think we all know that we are paying the same thing regaurdless.

I guess stores think that it an attention getter. You are right though it's only one cent different.

its a marketing strategy my friend and its like catching the eyes of the buyers and consumers when it does not really make a difference at all...you will believe that its cheaper because its not a full 100 but only 99.99...hehehe...its a norm here in my country and i know its also adopted to all over the world...funny because i was never given any change of a cent coz it really has no value here in my country..even opur 1 peso does not have a value anymore.

It's psychology ^_^ MOst ple will only take note on the 1st number on the price tag that we see, and it will auto etch in our mind.. lol =D ANd so, when products are being tagged at $49 or $99, our mind will start to play games thinking that it's cheap because if we pay with a $50, we will still get change back.. lol =D But if they priced their products as a whole price, $50, many ple will be discourage to buy, as it means higher price compared to the $49 they see.. hehe ^_^ Thus, it's just mind games that those shops are playing with us ^_^

they think it sounds better to the customer to say $49.99 instead of $50. that's the only reason they do it. guess that's called merchandising.

maybe it is a marketting gimic.i think people tend to buy more if it is not a round figure.

isn't it dumb, but they have done studies where it shows people that won't buy something for $50 bucks, will for $49.99. I guess those people are just stupid.

It is an interesting question.I think it is to avoid government taxes.Because taxes apply on round figures as 2% on sale from $1-$50 that's why they keep it 49.99 so that they have to pay less tax. Any way its my personal opinion.