Why does everything cost .99 or $1.99?
Why not cost $1 and $2.00?
- 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.
- HabiLv 79 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.
- 9 years ago
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
- The Mad HatterLv 69 years ago
Its marketing 101
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- Lady GalaxyLv 79 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.
- mayaLv 59 years ago
It makes you feel like you aren't spending as much money, therefore you will be more likely to buy it.
- Anonymous9 years ago
There's a big difference between $99.99 & $100.00 ;)
psychologically more effective
- Marie KLv 79 years ago
to make it sound cheaper