Worth 10¢
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It's the same psychology that causes big ticket items to be priced at 3999 instead of 4000 dollars. That last dollar causes the first number to go from 3 to 4, so even though everyone is aware that it's only a dollar, it feels like a thousand.
I read somewhere that Wal-Mart uses the odd cents on the end of the "sale price" as a way to "code" items, in other words, to let employees know if it's (for examp,e) overstocked, aged inventory, discontinued, etc. I don't know the code of course, but as an example, an item might be priced "on sale" for 28.88, the .88 meaning aged inventory, or 28.77, the .77 meaning overstocked, and so on.
Ts interesting how price affects motivation. When i was in the piano business, every once in a while there would be a specific piano that seemed like it would never sell. Just for explanation purposes, let's say it was a co sole piano, "regular price 3995, on sale for 2999." But it sat.... slash through the 2999 price, and put "special one only - 2488". But it sat..... slash through the 2488... "final sale price 1999!!!"... but it sat.. it seemed to be "marked"... but pull it off the sales floor and put in the warehouse for a month or so, bring it out again with a new price tag "$4895" and it would sell within a week, often for nearly 4k.... don't ask me why, but it always worked.
It's the same psychology that causes big ticket items to be priced at 3999 instead of 4000 dollars. That last dollar causes the first number to go from 3 to 4, so even though everyone is aware that it's only a dollar, it feels like a thousand.
Yup. LOL On similar story, I was reading about if someone is buying a bag of noodles for USD$10, and the exact same bag is for sale a block away for USD$9, many/most people will go the extra block to save the USD$1
But it someone is buying a fancy dress, and it is USD $476 in one store and the exact same dress in a store one block away is USD$475, most people would not get the extra block to save that one dollar.
Human thinking is very interesting.
