Bombstar From , joined Dec 1969, posts, RR:
Reply 2, posted (15 years 1 month 2 weeks 1 day 17 hours ago) and read 12164 times:
Well i heard that the origin of why prices on certain items are "99 cents" is because a long time ago, coffee was 99 cents, and newspapers were 1 cent, so someone could buy coffee and a newspaper, with a dollar.
DeltaRNOmd-80 From , joined Dec 1969, posts, RR:
Reply 3, posted (15 years 1 month 2 weeks 1 day 16 hours ago) and read 12159 times:
I would say around 5 cents. Also, the reason prices are 99 cents is because it is a pyschology thing. Someone is more willing to buy something that is 4.99 than if the first digit of the price is 5. They equate it more with being $4 than $5, and thus are willing to buy it. Wal-Mart does this extensively, almost every price in their store ends with a 9, because even though the price should be rounded up, it has been proven that people dont round it up when they are thinking of buying the item.