Why do we use 1 pence & 2 pence coins why not round prices to nearest whole unit ie. 1.99 to 2.00 pounds etc

Question

Why do we use 1 pence & 2 pence coins why not round prices to nearest whole unit ie. 1.99 to 2.00 pounds etc

Answer 1

i hate this system, it really annoys me getting back 1c or 5cent when they just get lost a a bag/pocket.

i think the reson the do it is because it makes the buyer think that its cheaper than it is. if you say 1.99 the 1 sticks out whereas if its £2 then it seems dearer in your head cos you hear 2. i find it stupid, and i think most people see past it cos people always say it something is 1.99 it 2£ or 249.90 its

250£ - it just sounds better in your head

ever notice when selling houses people put 499,500 - practicaly half a mil but if u say half a million it sounds dearer than 499,500

Answer 2

we use 1 & 2p coins because without them you would not be able to give change under 10p, once there gone it wouldn't be long before all coins were gone then every thing would start at 5 pounds (even a penny washer).

Answer 3

because a £1.## looks cheaper than £2.## it's a trick however i personaly don't apretciate them giving my a penny back, you can't buy anything for them amymore.... not even penny chews.

Answer 4

Because stuff like £1.99 and 99p are used to trick the customer into believing that something is a lot cheaper than it really is, because the customer only pays attention to the £1 bit without realising it's actually closer to £2.

Answer 5

Psychology. £1.99 is seen as one pound something, whereas £2.00 is a whole pound "more" than that, even though it's only a penny in reality.

Answer 6

because although its as little as a penny difference marketing believes if you put 1.99 people see it as cheaper than 2.00 even tho we know its only a penny its seen to be cheaper

Answer 7

Traditionally it meant you nearly always have to be given change, which in turn meant it had to be rung through the till, and stopped assistants pocketing the money.

Also there is the illusion that you are getting stuff for a pound less than it is. Nothing new in this, in the old days, stuff used to be priced at £1/19/11d (and a halfpenny often). In those days though a pound was rather a bigger deal than it is now.

Answer 8

good point