Quote:
Originally Posted by crook
Hi everyone. I was watching a TV show and an advertisement got me thinking. The product in the ad was priced at $49.99. I wonder why the price was $49.99 and not $50!
I am sure many of us have pondered on this question. Can anyone among us explain the reason behind this pricing to me? I don't want to be mad when I see a product listed at $99 and not $100!
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Boy! I discussed this with a friend yesterday and we could not come up with a good answer.
Here are my thoughts ( just thoughts, not supported by facts )
1. The product looks cheaper
! When a product is priced at 999 bucks, we tend to think that its little more than 900 bucks and below 1000. This might tempt us to buy the product.
2. As Kidakaka said, if its a cash deal, you won't really care for balance.
3. I doubt it has anything to do with the tax ( or am I wrong here? ). I'd just call it 'smart pricing' for the reason mentioned in point 1.
Anyone with better answer?
-The Big K-