9/10 of a cent

[benfranklin]

[ QUOTE ]

I'm entirely too lazy to google this properly for evidence, but there is the issue of consumer perception at play here. An item priced at $9.99 is more attractive to the average consumer than an item priced at $10.00, even though the savings is only one penny.



[/ QUOTE ]

This is the reason. It's all psychology. People tend to concentrate on the initial digits, and not on the very end of the number.

The practice with gas dates from back in the Stone Age when I started driving. If you were starting off pricing gas today, you would never think of using 9/10 of a cent. If you were going to charge about $3, you would probably just price it at $2.99 instead of $3.00.

But back when gas was cheap, 9/10 of a cent was relatively large. Charging 19.9 cents a gallon instead of 19 cents added up to a significant amount over the long run.

P.S. More ancient history: Back then, you couldn't pump your own gas. An attendent came out and pumped it, took your money, and gave you change. Rich people would say, "Fill'er up." Starving students such as myself would say, "Give me a dollar's worth."

[bravos1]

[ QUOTE ]
I also always get an even amount of gas. IE, $42.00 instead of 41.63

[/ QUOTE ]

I also have a friend who does this but can not explain to me why... he just does it. Can you tell me why you need to pump till an even number? If your paying cash, then it makes sense to me that you want to pump until some even-ness to reduce change, but most people use credit/debit cards and it doesn't make sense to me??? [img]/images/graemlins/confused.gif[/img]

[Shajen]

I do it because it's easier when I record all my transactions in MS Money. I usually wait til I have a shitload of them and record them all at once. It's easier to enter 42.00 than 42.79.

I also round every tip to the nearest whole dollar.

A 33.21 tab becomes $40 with tip.

I've always done it this way. Guess it's just the anal rententive in me.

[stabn]

[ QUOTE ]

P.S. More ancient history: Back then, you couldn't pump your own gas. An attendent came out and pumped it, took your money, and gave you change. Rich people would say, "Fill'er up." Starving students such as myself would say, "Give me a dollar's worth."


[/ QUOTE ]

Welcome to Oregon. Whenever i go to portland i always fillup in vancouver just so i don't have to deal with that [censored].

[bravos1]

[ QUOTE ]
I do it because it's easier when I record all my transactions in MS Money. I usually wait til I have a shitload of them and record them all at once. It's easier to enter 42.00 than 42.79.

I also round every tip to the nearest whole dollar.

A 33.21 tab becomes $40 with tip.

I've always done it this way. Guess it's just the anal rententive in me.

[/ QUOTE ]

OK..thx.. It's funny though because I always try to tip in whole dollar amounts. I guess I don't want the person to be walking around w/ $4 in change... but that wouldn't really happen anyways.. I guess LOL

[bwana devil]

on an unrealed note but it made me think of it, i remember as a kid going to a diner and i was just beginning to understand money and fractions.

on the menu everything was at least a dollar except milk. the milk was listed as .95c w/ the c being cents. i kept asking my parents if i could order a glass of milk and give the lady a penny and ask for my change. [img]/images/graemlins/grin.gif[/img]

i was an annoying kid.

[Patrick del Poker Grande]

[ QUOTE ]
[ QUOTE ]

P.S. More ancient history: Back then, you couldn't pump your own gas. An attendent came out and pumped it, took your money, and gave you change. Rich people would say, "Fill'er up." Starving students such as myself would say, "Give me a dollar's worth."


[/ QUOTE ]

Welcome to Oregon. Whenever i go to portland i always fillup in vancouver just so i don't have to deal with that [censored].

[/ QUOTE ]
Isn't there somewhere closer than Vancouver to fill up?

[Ringo_Mojo]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]

P.S. More ancient history: Back then, you couldn't pump your own gas. An attendent came out and pumped it, took your money, and gave you change. Rich people would say, "Fill'er up." Starving students such as myself would say, "Give me a dollar's worth."


[/ QUOTE ]

Welcome to Oregon. Whenever i go to portland i always fillup in vancouver just so i don't have to deal with that [censored].

[/ QUOTE ]
Isn't there somewhere closer than Vancouver to fill up?

[/ QUOTE ]

Vancouver WASHINGTON is just across the border from Portland.

And I used to do the same thing, last thing i want is some three toothed yokel pawing at my car.

[WLVRYN]

[quote

I also always get an even amount of gas. IE, $42.00 instead of 41.63

[/ QUOTE ]

I try to do that, but I always end up with the classic oversqueeze.

[youtalkfunny]

A always thought the 9/10 thing was related to taxes.