Why does everything cost .99 or $1.99?

Why not cost $1 and $2.00?

9 Answers

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  • 9 years ago
    Favorite Answer

    Because it gives people the psychological illusion they're paying less than they really are. $1.99 somehow feels closer to $1.00 than $2.00 for a lot of people.

  • Habi
    Lv 7
    9 years ago

    Psychological pricing: The seller here will consider the psychology of price and the positioning of price within the market place. The seller will therefore charge 99p instead £1 or $199 instead of $200.

  • not having it up to the next dollar makes it look like it costs a lot less even though it doesnt. so then people will be more likely to buy whatever it is

    and so they can make coupons that say "get $5 off on a purchase of $10 or more (without tax)" and then you cant use the coupon cause what you wanna buy is $9.99

  • 9 years ago

    Its marketing 101

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  • 9 years ago

    Because if you buy 100 things, you have just saved 100 pennies. Then you can go to the dollar store and buy whatever you want.

    =D

  • maya
    Lv 5
    9 years ago

    It makes you feel like you aren't spending as much money, therefore you will be more likely to buy it.

  • Anonymous
    9 years ago

    There's a big difference between $99.99 & $100.00 ;)

  • 9 years ago

    psychologically more effective

  • 9 years ago

    to make it sound cheaper

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