Why do we say "$19.99" instead of "$20.00?"

[carfreemama]

Okay, I guess I understand it from a marketing perspective; making us think we're spending less or something. But why do I do it when I know that? Am I more brainwashed by advertising strategies than I want to admit? Does this maybe influence my spending, after all?

This example comes from a friend complimenting me on my shoes today. I told her proudly I got them for $19.99. Since this takes longer to say, why don't I just say $20? I do this a lot and so does everyone I know!

[cappuccinosmom]

I only do that when I want to feel better about how much I spent.

Most of the time it's just easier to round up to the next whole number.

[Kyamo]

Maybe its just easier to repeat what you saw on the price tag rather than "translating" it to the nearest whole number? I don't think it means you're brainwashed! I think I say it both ways.

[carfreemama]

When I want to feel better about how much I spent, I usually round it down a little more than a penny!

[Sharlla]

I always round up to the nearest dollar.

[sunnysandiegan]

I round up and always have, but people tend to "correct" me with the exact amount. I find it interesting.

[Juvysen]

I always used to say the exact amount (I blame my tendency for perfectionism), but Dh always rounds up, so now I do, too. It's actually curtailed my shopping a bit, too...

[Ellien C]

I think it's training yourself. For me, when I see anything over $16.00 when I look at the price, I automatically think "that's at least a $20" and I visualize the bill leaving my wallet. Then I have to figure out if it will take some ones with it on the journey. I do this even if I'm paying CC, which is rare.

[carfreemama]

Excellent advice, Ellien C! Especially here in Nova Scotia, where many items have 15% sales tax; $16 really does come close to $20, anyway.

[alicia622]

I usually round up to 20 but DH would actually say the shoes were 19 dollars :

[Ruthiegirl]

I don't know why we do this, but it makes me crazy!

Funny story -- my MIL complimented me on a shirt once and asked where I got it. I told her and said that it was $20. She went looking for one at the same store, but couldn't find it. She called me from the store and said that she could find a shirt just like the one I had, but it $19.95, not $20. Did I think it might be the same shirt?

[CookiePie]

I do this too! But I also always say the exact amount I spent, for instance I might say, "I got found mascara on clearance for $2.49 then I used a $1 coupon so I only paid $1.49!"

[Amys1st]

the $199, 19.99 thing came originally from making change. People would walk into a store and it was $10. The customer handed over $10. Maybe the person behind the counter would put it in the register, maybe not! So if it was 11.99, 8.99 and the customer handed the cashier a $20 or $10, they had to make change thus going into the register.

[velochic]

Ack, double post. Sorry.

[velochic]

I always thought it was for psychological reasons. "Under $20" mentality.

[ian'smommaya]

its a marketing ploy. most people, when we see 19.99 its under 20 dollars. we don't think of taxes as part of the immediate price.

for instance if i sell something for $7.81 that's under eight dollars, even if the person buying it has to pay shipping. the shipping or taxes come in after youve already had it in your mind to buy that product.

it also has to do with invetory at a wholesale and store level. if all your sales end in the same number, 9, its easier to keep track of sales and shortages, ordering and stuff.

almost every one does this.

[Tiffanoodle]

For me, it depends on who I'm talking to and why I'm telling them. With dh, I will usually tell him the exact price if I remember it. He's been in retail for over 9 years. The company he works for has generally done even dollar amounts for clearance and certain other ending numbers signified something else. I don't remember them offhand, but if I say an even number, I usually don't have to clarify that it was clearance.

[allborntogrow]

I read once (but I can't remember where) that phsychological research had shown that 9 was the most appealing number???

[annettemarie]

I always round up and my firstborn perfectionist always corrects me. "No, Mom, it was $9.99, not $10"

[sanguine_speed]

We have a 15% sales tax so I'm in the habit of thinking of a price tag in an abstract sort of way, lol. So when I see "$16.99", I don't say "$16.99" nor "$17.00", but "$19.54". Or, more realistically, I suppose I'd round that to "$20.00", but not because it ends in .99.