Why do gas prices posted at stations are always with 9/10ths at the end of the dollar amt?

Question

Why do gas prices posted at stations are always with 9/10ths at the end of the dollar amt?

Answer 1

to get more $$$$$$$$$$$$$$$$$$$.

Answer 2

It's not to get more.  Answers is supposed to be about spreading knowledge, not showing how ignorant you can be...

I've answered this question before and happy to do it again.

The use of fractional prices goes back to at least seventy or eighty years back. In 1914, a Texaco service station's gas price was 14.5 cent per gallon. But 9/10 cent fraction pricing came during the 'great depression' of 1930s. The great depression decimated the demand for gasoline. More than 2.6 million cars and trucks were taken off the road, and the consumption of gasoline was down a billion gallons per year in both 1932 and 1933. Gas stations fought to service. Production at the time was running far above demand and the market quickly went into a serious oversupply situation. It was at that time that premiums such as candy, cigarettes, ashtrays, dolls and countless other giveaway items made their appearance at service stations. In such a competitive climate the gasoline marketers of the day were attracted to the concept of fractional pricing. Incidentally mechanical gasoline pumps with provision to set fractional price made their appearance at service stations around same time.

When prices zoomed at the gas pumps during the oil crisis of the 1970s and federal price and supply controls were imposed, individual stations lost the autonomy to set prices. The government issued mandated formulas for pricing, which resulted in unusual fractional amounts. Most motorists were accustomed to the price ending in 9/10th of cent, but reacted negatively to other arbitrary fractions. So, 9/10-cent price convention continued.

Answer 3

it is a psychological trick. it lets the buyer thing that they are getting a deal, because it isn't rounded out to the full dollar. 9/10this is a psychological trigger that tells the person, look you arn't paying $4.00 per  gallon it's only $3.99 the mind sees $3.00  and never realizes that $  3&9/10  is .01 cent away from $4.00.some stores ask you to pay $10.98 the 98 cents is also the trigger that says only $10.98 which is , in their mind a savings, because they won't have to pay $11.00 for the product, there is a discount. the mind doesn't relate to the face that it is only .02 cents.

Answer 4

Basically it is just a way to earn a little bit more money!  So when we are paying $2.99 a gallon for unleaded here in Texas we are basically paying $3 a gallon and the gas industry makes $141 million a month off of that 9/10 of a cent!!! Frustrating isn't it?

Answer 5

cuz it sounds better to say .99999999

than $1

same as 99.99 or 3.99 or whatever

Answer 6

Same reason stores charge $5.99. It looks better starting with a 5. Charging $3.25 9/10 for a gallon of gas looks better than $3.26.