May 02, 2008

Why Things Cost $19.95.* Think you're immune to that kind of pricing manipulation? Maybe not.

*plus $9.95 shipping and handling

posted by wendell 16 years ago
  • I read somewhere that, far from being a psychological trick, the 5/100 mark down was in fact a ruse to force the cashier to open the till (in order to give change). The thinking was that it would be easier to expose embezzlement.
  • I always assumed that things cost 19.95 because people can say to themselves, "I paid less than 20 dollars!" My wife will actually tell me that she saw a television listed for 1300 dollars, when it is actually listed for 1399. I love that gas in the US is still listed at the 9/10th. So it cost me 3.64 and 9/10 of a cent for gas the other day. Again, I always thought the idea was to make people believe that they are gettting it for a penny per gallon cheaper than they really are.
  • Tonight, I'm gonna party like I've $19.95.
  • Here in BC retail sticker prices don't include taxes so for an item marked $19.95, you'll have to pay an additional 7% Provincial Sales Tax and 5% Goods and Services Tax, so $19.95 becomes $23.94, making the situation all the more deceptive and annoying. The effect is, of course, more pronounced on big ticket items. For a $1,199.95 item, the real cost is $2,239.94. *plus shipping and handling, dealer prep, set-up fees, recycling deposit, environmental fees and the Monster cables.
  • islander, it's the same in california. the "price tag" never includes the tax :P
  • For a $1,199.95 item, the real cost is $2,239.94. I hope that was a typo, life in BC can't be that expensive. islander, it's the same in california. the "price tag" never includes the tax :P Being relatively new in N-America that still bites me in the ass. After 39 years in Europe I'm so used to tax inclusive prices that those 13% sales tax hit hard. And in restaurants it's even worse, since I have to add the gratuity as well. That's 30% more than the price on the menu. O, and related: this book! The Brits really got the worst deal since it was priced 9.99 euro in the rest of Europe.
  • Have you read that one, mare? Sounds quite interesting.
  • "See larger image" is a commendable public service.