money - Page 3

SeaMaiden · ‎03-10-2010

@catlover wrote:
when something costs $29.98, it does not cost $29, it costs $30

It costs $29.98. Why would it cost $30?

MorningLover · ‎10-04-2015

SeaMaiden wrote:
CATLOVER wrote:
when something costs $29.98, it does not cost $29, it costs $30
It costs $29.98. Why would it cost $30?

It will cost over $30 with tax.

SeaMaiden · ‎03-10-2010

@MorningLover wrote:
SeaMaiden wrote:
CATLOVER wrote:
when something costs $29.98, it does not cost $29, it costs $30
It costs $29.98. Why would it cost $30?

It will cost over $30 with tax.

@MorningLover depends of what it is. Not all states pay tax on the same things.... and you never mentioned tax or shipping.... you just said WHEN SOMETHING COSTS....

FiddleDeeDee · ‎03-06-2020

@catlover Agree.

"Coming to ya from Florida"

Cakers3 · ‎06-17-2015

@MorningLover wrote:
SeaMaiden wrote:
CATLOVER wrote:
when something costs $29.98, it does not cost $29, it costs $30
It costs $29.98. Why would it cost $30?

It will cost over $30 with tax.

@MorningLover Yet that is not what is being said.

$29.98 is $29.98. Tax rates vary from state to state; and some have none.

The host would have to list the price of the items for every state which really is not something that would happen.

If a consumer sees $29.98, he/she has to know that is the base price and know it may be more with the particular state tax added.

When I see a price, I say "twenty nine ninety eight". I don't say "thirty" or "thirty dollars".

"" Compassion is a verb."-Thich Nhat Hanh

proudlyfromNJ · ‎05-01-2010

I would say if someone asked me the price, $30.00. That would be my personal answer. What anyone else would say, it is up to them.

MorningLover · ‎10-04-2015

It's all a mind game

cbc.ca

The reason most prices end in 99 cents.

It's called the "left digit effect." That quirk we collectively share of looking at a price like $19.99 and seeing it as $19, instead of a penny shy of 20. We judge prices by the left digit.

This method of not pricing items in round numbers is also called "Odd Pricing" — referring to the resulting odd price numbers like 69 or 99 cents. The practice of odd pricing has been used for more than a century.

It's trackable as far back as 1875. At that time, a paper called the Chicago Daily News was founded. It sold for one cent.

The problem was there weren't enough pennies in circulation. So the owner of the newspaper went to the retail stores who advertised in his paper, and asked them to lower the prices on their goods by one cent. The merchants agreed to help the paper out.

Then the newspaper owner had barrels of pennies shipped in from Philadelphia to provide the circulation of change.

At the same time, distant merchants began shipping their products to the Windy City via the new railroads, giving the local stores competition. But those Chicago store owners noticed that the odd pricing helped them undercut these new competitors.

The odd pricing actually increased sales. Over 60% of all prices in all stores end in the number 9. Prices ending in 99 cents are powerful because we are conditioned to think 99 cents is a bargain, no matter how small the saving.

It's interesting that people don't perceive much difference in value between items priced at $20 and $25. But drop the price by one penny, and they perceive great difference between $19.99 and $24.99.

The power of the number "9" isn't confined to the cents column, either. One American clothing retailer experimented by changing the price of a dress from $34 to $39 dollars and increased sales by over 30%.

Meaning – higher prices ending in a "9" will actually outperform lower prices – on the very same product. The alluring thing about 99-cent pricing is that it feels like a sale price.

It's a game stores have played with us for decades.

manny2 · ‎05-24-2010

@MorningLover wrote:
It's all a mind game

cbc.ca
The reason most prices end in 99 cents.

It's called the "left digit effect." That quirk we collectively share of looking at a price like $19.99 and seeing it as $19, instead of a penny shy of 20. We judge prices by the left digit.

This method of not pricing items in round numbers is also called "Odd Pricing" — referring to the resulting odd price numbers like 69 or 99 cents. The practice of odd pricing has been used for more than a century.

It's trackable as far back as 1875. At that time, a paper called the Chicago Daily News was founded. It sold for one cent.

The problem was there weren't enough pennies in circulation. So the owner of the newspaper went to the retail stores who advertised in his paper, and asked them to lower the prices on their goods by one cent. The merchants agreed to help the paper out.

Then the newspaper owner had barrels of pennies shipped in from Philadelphia to provide the circulation of change.

At the same time, distant merchants began shipping their products to the Windy City via the new railroads, giving the local stores competition. But those Chicago store owners noticed that the odd pricing helped them undercut these new competitors.

The odd pricing actually increased sales. Over 60% of all prices in all stores end in the number 9. Prices ending in 99 cents are powerful because we are conditioned to think 99 cents is a bargain, no matter how small the saving.

It's interesting that people don't perceive much difference in value between items priced at $20 and $25. But drop the price by one penny, and they perceive great difference between $19.99 and $24.99.

The power of the number "9" isn't confined to the cents column, either. One American clothing retailer experimented by changing the price of a dress from $34 to $39 dollars and increased sales by over 30%.

Meaning – higher prices ending in a "9" will actually outperform lower prices – on the very same product. The alluring thing about 99-cent pricing is that it feels like a sale price.

It's a game stores have played with us for decades.

@MorningLover You are correct it has a psychological component to it, since we read left to right our brain computes to the lower price. It has been used effectively for years.

Sooner · ‎03-10-2010

@SeaMaiden wrote:
@catlover wrote:
when something costs $29.98, it does not cost $29, it costs $30
It costs $29.98. Why would it cost $30?

@SeaMaiden I agree. No wonder we're in trouble when people take everything that's said and make something else out of it. Especially when it is obviously NOT true.