Gas Price question -- not another rant, just a question

[bunker]

Why do all gas stations charge $x.xx 9/10?

What's with the 9/10? I could understand if the station across the street wasn't using that and you were to make it look like you were cheaper, but all of them do it.

 

[Pepsi90919]

ours use different tenths.. like 0.723 a litre.


or as it would read on the sign, 72.3.

 

[JoPh]

maybe just for the fact to make it look a cent cheaper then it is? the art of deception.

 

[conjur]

Same reason stuff is priced at $13.99 or $49.95. Psychologically, you see that lower number. <shrug>

 

[dullard]

Most small vehicles fill up with 10 gallons, and most larger vehicles fill up with 20 gallons. 0.9 cents * 10 gallons = 9 cents. 0.9 cents * 20 gallons = 18 cents. Thus the decimal point disappears as soon as you fill it up with a typical amount of gas (it would be a different story if most of us filled up with just 1 gallon, since I don't have any 1/10 cent pieces in my pocket - but they did exist in the US in the past). Also that is a free dime or two with each customer. If you have one customer every 5 minutes, that is $6000 more you earn per year for adding that 0.9 cents at the end. Of course they put that 0.9 cents in small print and have very large print with the rest of the price to decieve the customers.

 

[C'DaleRider]

Originally posted by: dullard
Most small vehicles fill up with 10 gallons, and most larger vehicles fill up with 20 gallons. 0.9 cents * 10 gallons = 9 cents. 0.9 cents * 20 gallons = 18 cents. Thus the decimal point disappears as soon as you fill it up with a typical amount of gas (it would be a different story if most of us filled up with just 1 gallon, since I don't have any 1/10 cent pieces in my pocket - but they did exist in the US in the past). Also that is a free dime or two with each customer. If you have one customer every 5 minutes, that is $6000 more you earn per year for adding that 0.9 cents at the end. Of course they put that 0.9 cents in small print and have very large print with the rest of the price to decieve the customers.

Exactly how does the .9 deceive anyone since it's used EVERYWHERE in the US?

 

[dullard]

Exactly how does the .9 deceive anyone since it's used EVERYWHERE in the US?

It reminds me of that Simpson's episode where the bullies are surrounding Ned Flanders. Ned didn't know where he was at, but he saw a gas sign with 8/10ths written on it. Marge shouts, "Larry's Discount Gas!". Nice discount. For some reason I find that really funny.

Conjur gave the reason. Show people a price tag of $49.95 and then ask them what the price was. 90% of people will say $49, only 10% of the people will say $50. It is a psychological trick - we typically truncate, we typically don't round. Truncating that last little bit makes us think it is priced lower than it actually is. It isn't illegal since the true price is clearly listed. But psychologically we think only of the lower price. Thus they know many people will buy the product thinking of the lower truncated pric.e

 

[toant103]

Originally posted by: conjur
Same reason stuff is priced at $13.99 or $49.95. Psychologically, you see that lower number. <shrug>

Didn't the Jewish invented this?

Well, that's what i heard.

Like the $.99

$2.99

 

[Fausto]

Originally posted by: toant103

Originally posted by: conjur
Same reason stuff is priced at $13.99 or $49.95. Psychologically, you see that lower number. <shrug>

Didn't the Jewish invented this?

Well, that's what i heard.

Like the $.99

$2.99

Got your newest issue of "L'il Klansman" in the mail yesterday, eh?

 

[SUOrangeman]

I thought the 9/10 was a part of the tax on gasoline. Oh well.

-SUO

 

[imported_Tomato]

Originally posted by: toant103

Originally posted by: conjur
Same reason stuff is priced at $13.99 or $49.95. Psychologically, you see that lower number. <shrug>

Didn't the Jewish invented this?

Well, that's what i heard.

Like the $.99

$2.99

 

[LeeTJ]

Originally posted by: bunker
Why do all gas stations charge $x.xx 9/10?

What's with the 9/10? I could understand if the station across the street wasn't using that and you were to make it look like you were cheaper, but all of them do it.

don't listen to the morons below me. it is only carried over because it's always been done that way.

when gas was $.10 / gallon that additional 9/10's made a HUGE difference. the difference between $.09 / gallon and $.09 and 9/10 per gallon is HUGE. what a 10% increase??

to think that it makes much of a difference now days that gas is selling for $1.70 / gallon is ludicrous.

 

[FoBoT]

you can read these google hits, i am not going to link each one

this quote is from the first result

A good example of how retailers and consumers use price information is gasoline, according to Stiving. He noted that the price of a gallon of gas nearly always ends with nine-tenths of a cent.

?Every gas station adds that extra nine-tenths to the price, so it makes no sense for consumers to look at that last digit. When you compare prices, you know that if you ignore that last digit you will still get a fair, even comparison. And retailers are maximizing their profits by adding that extra nine-tenths.?

 

[VBboy]

a $999 computer GENERALLY feels cheaper than $1000. However, a $1001 computer feels MUCH MORE than a thousand. Most people even quote the price as "nine hundred dollars". Same here.