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  • Category: Miscellaneous

    Why are the prices mentioned ending in '99'.

    In many stores, big shops, show rooms and malls the prices of many items are mentioned as Rs 99 or 199 or 299 and so on. These items are mostly fancy items or clothing or toys or decoration items. I do not see any logic of doing that. They can very well mention the prices as ending with 95 or 00. Instead of 599 they can very well write a price 595 or 600.

    Have you also observed such thing in shops? What do you think the reason behind this practice?

    Please share your views.
  • #653415
    There might be the applicability of taxes within a certain ranges. For example, for certain type of commodities the ranges 1 to 99 & then 100 to 199 etc. Or in other way, this could also be relating in context to let feel the customer of less pricing because we have a different feeling when we see 99 or 100. Let's see what other observers have to say.

  • #653418
    When the price is kept as 99, customers will think that the manufacturer is having a very good system of costing and they don't allow the price to the nearest rupees also as they were so particular about the costing . So the customer will think that the sellers are very particular in not allowing the purchaser to lose even a single rupee. So customers will like to purchase from them without bargaining. Earlier days Bata chappals cost used to be .0.95 paise as the lost digit. The cost will be 90.95 or100.95 so on soforth.
    It is a mind game only. They are trying to get the support of the people by making the rates so accurate. Another point may be tax levels. Probably by keeping One rupee less than the nearest hundredthe tax levels may get reduced. That way they may be helping the customer in saving the tax amount to some extent also.

    always confident

  • #653434
    To increase their sales the shopkeepers or showroom owners in collusion with the manufacturer or supplier will use all the possible techniques and tricks to lure to customer to their product. This one is also one of them. How it is possible that a large number of items will have their selling prices ending with 99.

    I have seen some stores where the name of store is itself 99 store and everything there is available for 99 or 199 or like that. If one item does not fit the scheme, they will make a pack of 2 or 3 pieces to somehow make it ending with 99.

    By doing this they achieve two things. One is the curiosity of the people that how it is 99 only and other is the psychological perception that if a thing cost 599 then we see the 5 before 99 and think that it is five hundred something and not six hundred something and this is only a apparent relief by even pricing the item at ending with 99 which otherwise are a few rupee above then the hundred mark. For example anything costing 603 will be kept at 599. It is only 4 rupees below but the first effect on our mind is five hundred something and in that impulse many people purchase it.

    The gimmicks and tricks in business are sometimes very strange also.

    Knowledge is power.

  • #653437
    I have this question for long too. I think its not just a gimmick though. Because gimmicks don't work equally on consumers of all cultures equally. Fruits and vegetables rarely end with highest possible number, I.e..; 9.
    But electronic goods and other scannable products do. I think it is for the convenience of the machine that scans. 10 is the smallest possible number or I should say tens are the smallest possible numbers and 9s are the largest possible numbers.
    For example in 1-100, 10 is the smallest possible two digit number and 99 is the highest. Maybe these machines are set to scan highest possible digits easily. It's just a speculation I have.
    One more idea I have is that it is some kind of deduction in form of tax or insurance. This one rupee on every product is essentially a profit to the seller because we don't get our change in return. This is not shown anywhere. Since a lot of products are brought, there is a lot of one rupee as money circulating.
    If that is the case, then it's a pretty nifty strategy.

    The stronger a light shines the darker are the shadows around it.

  • #653462
    As Ved Prakash told there is taxation which makes them fix prices like this. For certain limits, they have certain tax so in order to not to go in higher slab they keep prices like 199,299,99 etc.

    Also, there is a psychological factor in the mind of the customer that they have exceeded their budget of 200 but bought the product in 199 rupees.


    " The two most important days in your life are the day when you are born and the day you find out why? ”
    – Mark Twain

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