Why do stores sell things just under a rounded dollar?

@sharie16 (2213)
Philippines
September 11, 2008 7:01am CST
[b]For instance, prices like $49.99, $99.99...and so on. Why don't they just say $50 or $100..and so on. Does it makes that much difference? Do you think that strategy is good, when in fact $.05 are running out, or even they doesn't give the change if you give $50 or $100. So what are your thoughts to these? Happy mylotting![/b]
5 people like this
9 responses
@reinydawn (11649)
• United States
17 Sep 08
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.
@bowtieguy (5924)
• United States
16 Sep 08
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.
@kun2349 (23464)
• Singapore
12 Sep 08
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 ^_^
@Shaun72 (15968)
• Palatka, Florida
12 Sep 08
I guess stores think that it an attention getter. You are right though it's only one cent different.
@ANTIQUELADY (36468)
• United States
11 Sep 08
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.
@andak2007 (3229)
• Philippines
11 Sep 08
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.
@ElicBxn (61069)
• United States
11 Sep 08
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.
@a_ali14 (49)
• Pakistan
11 Sep 08
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.
@riyasam (16570)
• India
11 Sep 08
maybe it is a marketting gimic.i think people tend to buy more if it is not a round figure.