Pricing Strategies Canada Part 1

Why do prices end in 99 cents?

Every retailer is totally convinced that ending a price in 99cents somehow fools the customer into thinking that here is a better price. But until the late 19th century, even number prices were the norm. This changed with the arrival of a simple machine. And that simple machine was adopted quickly because it kept store clerks honest.

Andrew D. Gregson B.A., M.A. M.Sc.(Econ)
Kelowna, BC, Canada
cell: (250) 859-0752

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