Why Do Prices End in .99?
Failed to add items
Add to cart failed.
Add to wishlist failed.
Remove from wishlist failed.
Follow podcast failed
Unfollow podcast failed
Why Do Prices End in .99?
-
Narrated by:
-
Written by:
Why does something cost $19.99 instead of $20?
It's one cent.
We all know it's basically twenty dollars. The retailer knows we know it's basically twenty dollars. We know they know we know.
And yet... $19.99 survives.
In this episode of Wait... Why Do We Do That?, we investigate one of retail's most persistent little tricks: charm pricing.
We'll discover why our brains can treat $2.99 differently from $3.00, how the first digit of a price can influence the way we perceive it, and why that seemingly insignificant penny may actually affect what we buy.
We'll also investigate the wonderfully convenient story that 99-cent pricing was invented to stop dishonest shop assistants pocketing the money, why the real history isn't quite that simple, and how prices ending in nine became associated with bargains and discounts.
Then there are sale prices, luxury pricing, online shopping and the subscription economy, where $9.99 a month sounds
Send us Fan Mail