Q: $19.99 : because 20$ is an outrageous amount of money?

praveensapkota
110
Have seen many deals, here online or in store they have the .99 figure, not the round figure. Most of you might have noticed....why do you think they are doing so?

$19.99 : because 20$ is an outrageous amount of money 
or
to mobile the penny
or 
any other thoughts/belief?

Just curious to know.

Thanks
praveensapkota posted Sep 26, 2012
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12 Comments
encorez
Gas is the same...
encorez (rep: 9.96k) posted Sep 26, 2012
20
xptrish
I think it's the mindset that $19.99 sounds cheaper than $20.00
xptrish (rep: 72.6k) posted Sep 26, 2012
10
belarus94
Research was done and it appears that in people's minds smaller number (even by a penny) makes a big difference while shopping. Not always the case though. Some stores list items like $.89, $.79. $.77 etc. This is how they identify clearance items, low stock items, final sale items, etc.
belarus94 (rep: 63.2k) posted Sep 26, 2012
20
praveensapkota
It makes sense now
praveensapkota (rep: 53.1k) posted Sep 26, 2012
00
bbattag
It's all marketing. A consumer is more likely to buy an item at $19.99 than $20.00. Researchers have been investigating this for a long time and they seem to think that it helps sellers sell more.
bbattag (rep: 6.77k) posted Sep 26, 2012
10
chuckydealpl
It definitely is a marketing tool, .99 always looks better then .00. Gets me all the time.
chuckydealpl (rep: 40.8k) posted Sep 26, 2012
20
MdavidK30
It's all like that- everywhere! Whats with getting back one penny... anyway, it adds up 6-7 cents anyway at the end with tax.
MdavidK30 (rep: 3.56k) posted Sep 26, 2012
10
ancagavs
I agree with Trish, seems cheaper.
ancagavs (rep: 15.4k) posted Sep 27, 2012
00
phatdeals
Yup, it's a trick to make consumers think something is cheaper than it really is. Just try asking people what a $19.99 item costs. Most will probably say "nineteen dollars" as opposed to "twenty dollars". Doesn't get me though! :P
phatdeals (rep: 2) posted Sep 27, 2012
00
maven3
.99 is supposed to be more attractive to your psyche:
http://en.wikipedia.org/wiki/Psychological_pricing
maven3 (rep: 5.23k) posted Sep 27, 2012
00
zoneric
I've read a part of that article. It's very interesting and very informative. I recommend it.
zoneric (rep: 26.6k) posted Sep 27, 2012
00
lilywow
Psychological pricing according to what I learned in marketing class. A penny saved is a penny earned?? LOL
lilywow (rep: 8.33k) posted Sep 28, 2012
00