True post #4

Well its more of a psychology thing. the .99 suggests it being cheap rather 20.00 suggests higher quality. You won't see an expensive car for 49999.99.

The .99 is so that the cashier has to open the register and put the money in so they can't steal it.

because for people 19.99 is more like 10 instead of 20

No. No. No no no.

The whole point of $9.99, three payments of $15.99, blah blah blah is completely for appeal only. When an average person looks at a price of $4.99 they're going to say, "Holy shit $4." When in reality it's $5.

I thought it had something to do with tax or something...

Then again, I'm an idiot.

Another reason prices subtract the penny or two is so cashiers can't pocket the cash.

Yes, yes it is.

Marketing branches of most major corporations hire market psychologist that specialize in the consumer mind. They think up the best ways to sell a product. One way is by discounting the price only slightly. Believe it or not we fall for it every day. For example, you could by winter fresh gum for $2.00 or orbit for $1.89. the ten cent difference, although minuscule is noticeable by the human psyche and commonly chosen while people are shopping in passing. It is for this reason that all the cheap toys, trinkets, and gift cards are placed at the checkout. You would usually be in the mood to leave, but the discounted price catches your attention.

...or some shit like that.

They've shown that when people see things like 4.99 or 19.99, that even though it's quite literally pennies worth of a difference, our brains perceive it as a deal, or better price.

**jokersaysamuseme rolled a random image posted in comment #579970 at MLP Friendly Board ** Outrageous

Ok...I could be very wrong about this...but I think that the only reason why things are priced this way is not because of psychological reason. But only so that pennies can also be used in circulation. Took a shot. Am I wrong?

inb4 some smarfag explains that it's a psychological thing

WE ALL KNOW THAT

It was useful many years ago when cashiers werent double checked by machines and therefore could lie as to what the change was and shorthand the customer and pocket a few cents for themselves. 19.99 made it abundantly clear to the customer that he should be expecting at least one penny back and force the cashier to open the cash register and give change.

its useless today and only lingers on as a tradition.