It's because $299.99 sounds less than $300.
Originally it was a trick to stop shop assistants stealing the money. If something was priced at $100, the customer would pay with a $100 bill and if he didn't insist on a receipt, the assistant could just slip the money in his pocket. However, if it was priced at $99.95, the assistant had to ring it up on the till to give the customer his nickel change. However, shops found that customers tend to look at just the first digit when considering prices and that you could shift a lot more merchandise if you charged $99.99 rather than $100.
Because having the 2 at the front of the price sounds a lot less than a 3. Even though it's only 0.01.
It's not tax, it's not making the shop assistant use the till. It's marketing.
Its called Psychological Pricing! Impressions created by seen a $99.90 tag and a $100 tag are not the same! How much you convince yourself that there is no material difference you tend to feel $99.90 is much cheaper than $100
Tests were done and the reduced amount was more often purchased than the one that was only a cent more. Doesn't make sense to me but they say it works.
psychological trick
those involved in selling (marketing, retailers) have utilised all manner of psychological ploys
Hi there!
i live in MiddleEsat and i'm eager to know why there are prices like $299.99 or $2,599.00 instead of 300 and 3000? is it for a tax law or something? or it's just a trick because 299.99 dosen't sense like 300?
at the end i apologize for probably mistakes in my English.
