Why do items in stores cost, for example, $2.99, instead of exactly $3.00?

Question

Why do items in stores cost, for example, $2.99, instead of exactly $3.00?

Answer 1

lol this is funny question, lol it's mind trick , they kinda trick u because when u see $9.99 u thing it's just $9 and u forget about the 99 cents witch means $1, that's the way how we live bro.

Answer 2

Marketing. When you have a quick look at the price you see $2 in your head, instead of $3, this applies more when you start talking about notes like $10.00/ $9.99

Answer 3

its all in ur head

Answer 4

Makes you feel better when a lower number starts the price.  It's a mind trick they use to get you to buy stuff.

Paying 99.99 is much better than 100.00

2 for 5.00 is better than 2.50 a piece

etc.

Answer 5

Many folks think the store is trying to "fool them", but obviously no-one is that stupid! Or are they?

It has to do with the way tax is collected by the retailer on behalf of the State (or County, or whatever)...

If the tax is 10%, the retailer will collect $1.09 on a 99 cent sale (ie they collect 10 cents when the tax is really only 9.9 cents). Retailers get a discount on the tax they pass along, too, as payment for collecting it.  That "little extra" can add up if you sell "over a billion" at 99 cents a pop!