Pi Attitude Zone: Ethics & Altruism

Weird Pricing Not So Weird

Retail pricing conventions are not always what they seem.  Take, for instance, the “one penny less than a round number” price-tag.

Everyone thinks that supermarket items are priced at $4.99 to kid people into thinking they are spending less than five dollars. Which would be pretty nonsensical.

Well, folks, there’s actually another, much stronger reason. And it has to do with making sure that the money charged for an item really makes it into the till.

Canny supermarket owners long ago figured out that it’s better to charge $4.99 so that the five dollar bill the shopper hands to the checkout attendant will actually be put into the till machine, rather than being surreptitiously diverted into the shop assistant’s holiday fund. Giving the customer back the missing penny forces the checkout clerk to open the till, you see…  Keeps ‘em honest…

Pi says: cynical world, huh?

Zone: Ethics & Altruism Country: Multiple Geographies Product – Retail