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by Alan70 on May 28th, 2008

Alan70

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I realize in the "old" days when gas was a few pennies a gallon it was important for gas stations to price their gas in 1/10 of a penny for competition. My question is why is this practice still continued when gas is $3.50 (and 9/10) a gallon? Is it reall

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  • by Carwash on May 28th, 2008

    Carwash

    I guess it's partly that historical reason, and also sales psychology. People still price their items at 9.99, for example, because people just see the nine and assume it's roughly $9. It also tends to be lower prices that go into cents, and higher prices leave off the smaller amounts, so leaving in partial cents gives an impression of a lower price. If people perceive the price to be lower, then it doesn't matter so much what the price actually us.

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You're reading I realize in the "old" days when gas was a few pennies a gallon it was important for gas stations to price their gas in 1/10 of a penny for competition. My question is why is this practice still continued when gas is $3.50 (and 9/10) a gallon? Is it reall

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