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# Only \$4.99

We all know from a very young age that .99 is just 1 + .01, And I think people have caught on about that, and how it's sort of like an optical illusion, so why do retailers do it? We all know it's 5 dollars.
n0obie4life
It's..thinking.

I don't know how to explain it.

But sometimes, when you look at it \$49.99, hey, it's only \$40 dollars..the "4" digit is smaller. It's better than putting the price at \$50.

"5" digit < "4" digit.
Yeah, I suppose... But how much of a difference could it really make? I guess we'll never know.
Daniel15
 AdamantMonk wrote: We all know from a very young age that .99 is just 1 + .01, And I think people have caught on about that, and how it's sort of like an optical illusion, so why do retailers do it? We all know it's 5 dollars.

I think you mean 1 - .01, not 1 + .01

Anyway, it does sound a bit better. Also, things that are priced at \$249.95 can be advertised as "Under \$250". DVD's in the "Under \$10" section at stores are usually \$9.95 (we don't have 1 cent and 2 cent coins anymore in Australia)

Another thing is you'll get save some money if you buy 1,000,000 at a time
Blaster
It doesn't seem like .01 cent is that much but when you are dealling with a lot of money it does. 5 dollars would make more sense though. It would make it so much nicer not to have change anymore.
gh0stface
Well, a lot of people don't really care for caring 1 cent in their pocket. So when retailers set a price at x.99, a majority of people will leave the 1 cent behind. When you couple that with a bajillion(okay, an exaggeration) it'll add up.

I mean, I know that I have left quite a few 1 cents behind.
Nameless
I think it's stupid. I mean, to me, \$9.99 sounds a lot more than \$10. Look at all those nines!
speedlikecy
super market always use this

9.99
goodforum
it's a way to make u think it's less money....(i guess)
Hey! it's not event 5 dollars! (it's \$4.99)
haha
Nyizsa
 gh0stface wrote: Well, a lot of people don't really care for caring 1 cent in their pocket. So when retailers set a price at x.99, a majority of people will leave the 1 cent behind. When you couple that with a bajillion(okay, an exaggeration) it'll add up. I mean, I know that I have left quite a few 1 cents behind.

I think you have found the point! So the store will realize 0.01 TAX-FREE income on every item sold!
Yazz
The 4 appeals more to us than the 5 does. It's basic logical skills. Since we read left to right, the first thing we encounter will be what we start basing the price off of and our brains are like "Ooh, it's only in the 4 dollars range!" Then we have to use our concious logic to add the amount after the first number and make the connection of the price being deceptive. It's not about money, it's almost an advertisement scheme aimed directly at the general public's mental construct.
BruceTheDauber
 gh0stface wrote: I mean, I know that I have left quite a few 1 cents behind.

Maybe I'm tight, but I don't think I've ever left 0.01 behind. It's not their money, and there's no way they're having it from me. Psychologically, it doesn't work for me, either. When I hear 9.99, I automatically round it to 10.00. Also, if everything in a shop is rounded to .99, I think about how some of those things could have been .67, and some of them .80 and the shop would still have made a profit -- they must be rounding prices up for everything neatly to be .99.
dz9c
Yea but what would you rather pay? 4.95 or 5.00? And like that othe guy said before it makes it look smaller even though many people automatically round it up to the next tens or whatever
Yazz
 BruceTheDauber wrote: Also, if everything in a shop is rounded to .99, I think about how some of those things could have been .67, and some of them .80 and the shop would still have made a profit -- they must be rounding prices up for everything neatly to be .99.

Yes... Also... Maybe they want more profit? I think that'd be a safe bet for putting prices up higher while people will still pay as much to buy it.
faker
Even so people would feel more cheaper psycologically because 4 IS smaller than 5. this makes alot of people feel more comfortable buying the item. of course at the end all the things you took will still surprise you. for my case i just assumes it is 5 rather than "4 something", helps me control my spending
Kaneda
In Denmark, until about 16-17 years ago, our smallest currency were 0.05, so most prices in Denmark ended with .95.

Then we changed the smallest currency to 0.25. Did the prices then change to .75? Nope, it's still .95.

So now, the value makes even less sense, since if you buy an item at DKr 19.95, you'll have to pay DKr 20 for it, unless you pay by credit card (and even in that case, some shops will still round up the amount to pay).

The only other way to get those "cents" (really, "ører") back is to buy 3-5 items, since the sum will then be .85 or less, and rounded down to .75
leat397
 goodforum wrote: it's a way to make u think it's less money....(i guess) Hey! it's not event 5 dollars! (it's \$4.99) haha

yeah that's it.
Some belived that such marketing (or trading?) method was firstly used by Jewish..

anyway, 4.99 is of course 5.00 since we are actually would not take the 0.01..

More, such technique was widely used in supermarkets/ department stores and you would seldomly see it happens in company contract
OtakuBoi
I think they know we aren't immediately falling for the 1 cent off trick anymore, that's why in some ads I've seen more recently they say "Only \$19.95" or "\$19.98"

It's probably trying to throw your brain off from the automatically converting .99 to 1
Blaster
That couple of cents they think may go to them bukets that are for charities and stuff.
thegamecreator
thats one reason i hate going on base...cause theres no tax...so paying for somthing like lets say a 9.99 dvd...is 9.99...so you get 1 peny back...its so retarded...why not just make it at 10\$ when i think of 9.99 the first thing that pops into my head is

9.99 x 0.07 = ??? 10 x 0.07 is so much easier for my brain
mOrpheuS
5.00 has a higher number at the most significant digit position than 4.99
The difference human brain perceives between the two is more than worth 0.01.
Or atleast the sales/marketing folk think that way

Back when we were in college, me and my bunch of pals used to have fun with this.
We would adamantly demand the 0.01 or the 0.05 bucks back from the shopkeeper.
Since those denominations are no longer in use, they all ended up giving us back one whole instead ... to get us out of the shop

You should all try that sometime, it's fun.
thegamecreator
i dont get what you mean MOr explain it again in simpler words
mathiaus
I believe it was originally introduced so that when you pay, the till dude has to open the till and give you change. For the shops to stop people just taking a note and sticking it in their pocket, but of course its good for other things as well as it increases communication even by "heres your change/receipt" so people feel less like 'sausages' as one advert puts it (kia cars). As already mentioned its less than a standard value so they can advertise its less than that standard value etc
KHO
lt has to do with how most humans are stupid
no, l'm dead serious, especially in the US When you look at \$49.99 you may think \$50, but, if you look at that, then you look at \$59.99 you still think \$50 oh, thats some crap huh? And that is how they get you to pay an extra \$9.99+tax

Nah really, it is just some gay thing that the marketing people use thinking we are all stupid, the above example is waht they think we think , but l see \$70 when l see \$59.99 cause l think tax will get me close enough to \$65 where as l round to the nearest \$10
Indyan
It's just to create an illusion that prices are lower.
Like if the price is \$1999.99 it seems better than \$2000.

I agree with wht KHO said. It's just our brain
KHO
l swear, whenever l see that many 9's l think the price is higher l think that they control us by regulating our sleep l haven't slept in three days now, yet l am not tired, and l can think clearly . Note the punctuation and lack of mispelled words .
BruceTheDauber
 Kaneda wrote: In Denmark, until about 16-17 years ago, our smallest currency were 0.05, so most prices in Denmark ended with .95. Then we changed the smallest currency to 0.25. Did the prices then change to .75? Nope, it's still .95. So now, the value makes even less sense, since if you buy an item at DKr 19.95, you'll have to pay DKr 20 for it, unless you pay by credit card (and even in that case, some shops will still round up the amount to pay). The only other way to get those "cents" (really, "ører") back is to buy 3-5 items, since the sum will then be .85 or less, and rounded down to .75 :P

That's crazy. It's theft, isn't it? What happens if you pay by credit card, do they still round up the money?
Jayfarer
I don't know if I buy the "marketing" explanation. Everyone I know who has seen a price tag that reads "4.95" or "4.99" always tells me, "Oh, it costs \$5.00"

If it is a marketing reason, it doesn't work very well.
nilsmo
Another way of rephrasing what everyone has been saying: you see the 4 first (and sometimes ignore the .99) when comparing prices.
xorcist
 AdamantMonk wrote: Yeah, I suppose... But how much of a difference could it really make? I guess we'll never know.

Its not going to make alot of difference but when you see 49.99 you just see that 4 and might be tempted to buy its is all in the mind and they just use that to let you buyit.
Kaneda
 BruceTheDauber wrote: That's crazy. It's theft, isn't it? What happens if you pay by credit card, do they still round up the money?

The law says, they have to round to nearest .25 (up or down), but if paying by credit card, they have to charge the exact amount (but you can't complain after you've paid). Noone except the pedantic cares anyway - 0.25 DKr = around 0.04 US dollars.

I remember a poll here about "the most satisfying thing". One possible answer was when the counter stopped at an exact amount, like \$20, when filling your tank. Whenever I fill the tank on the bike, the most satisfying thing is obviously when it stops at DKr 100.12
mae1strom