Why do most thing's price end in 99 cents?

I've always pondered this. Why do thing end in 99 cents? Do you have an idea as to why? Please post.

Because it makes people believe it's cheaper.

Does $4.99 look cheaper than $5.00? I'd say so.

It's a marketing tactic.

The same thing applies to dollars, too. When the GameCube's price was dropped to $99.99 its sales picked up exponentially.

Its especially effective when its an expensive Item.

49 999.99 Vs 50 000.00
999.99 Vs 1000.00

Its comical because when I was in NZ the tax was included in the price of items and they were marked differently than in North america! it was funny anyways.

'Cuz if it'd be a whole number they'd be cursed.

Nah I don't know really. I've been wondering this too.

Originally Posted by sea

The same thing applies to dollars, too. When the GameCube's price was dropped to $99.99 its sales picked up exponentially.

... but didn't it go from 150 - 100? that'd pick up sales if oyu ask me.

It looks cheaper, and I think it may have to do with sales tax.

1) It makes the price look cheaper.

2) It makes the price look fancier.

3) yeah it think it does have something to do with sales tax.

4) Maybe 99 makes the product lucky? Who knows maybe it's a luccky sales number.

it has nothing to do with sales tax. 99 x .0825 = 8.1675

it has everything to do with making the thing look cheaper.

Originally Posted by PowerfulDragon

it has nothing to do with sales tax. 99 x .0825 = 8.1675

it has everything to do with making the thing look cheaper.

Maybe but then again different locations have different sales tax. (Example: Where I live the sales tax is 7.75%)

99 x .0775 = 7.6725

still meaningless.

Originally Posted by PowerfulDragon

99 x .0775 = 7.6725

still meaningless.

Ok then! (Truthfully, I just didn't really feel like doing the math.^^ )

Well i work in currys and we use the .99 or .98 so the sales team know how recent a model it is or not and if it ends in .97 then we can sell display models.

It's stupid, really. Honestly, what's a cent worthy? It's just a penny, or whatever.

I remember this one time that I stood behind a lady in some odd, random store a couple of weeks ago and she complained LOUDLY that a sticker read $4.99 on the shelf but was coming up at $5 even. It's just a damn penny. -.-

They do it because I deem it so.

Marketing/Psychology tests show that people percive items that are $49.99 as cheaper than $50.00, more than the actual price difference, thus making those items more liekly to sell. Trust me, in matketing, they test EVERYTHING! And companies stick with what sells.

No its just one big conspiracy! what you know is a lie, unless you know what I am about to tell you... then I guess you are right.

It all started about 200 years ago... or well around 1800. Some say Its a decade more, some say its a decade before that date. However it doesnt really matter.

A group of satan worshipers wanted to use the symbol 666 as much as they can, not sure why. Anyways they came up with the price, 9.99 for most of the things they sold.(Flip that upside down and it looks like 6.66 or 666) however they did not want anyone to know they were using the number. So... they made all prices like that!

However someone in 1929 figured it out. They were going to expose the group but they were to powerful and caused the stock market to crash! wanted to teach the person a lesson. The man who wanted to expose them soon commited suicide because he felt guilty.

till this very day we still use the .99, but only because we dont know its origins. We are all blind.

Thats my story and I am sticking with it! even if its completely untrue.

Funny... I remember this store that sold stuff at prices that all ended with 1 or .01. So, everything there cost 5.01 mk (Finnish marks) or 101.1 mk etc.

They suddenly reverted back to the .99 system very soon, though. I guess that's saying something.