Why the nine-tenths in gas prices?

[v3rrv3]

Originally posted by: Vic

Originally posted by: Kaervak
It's marketing. Instead of $1.45 a gallon you get $1.44 and 9/10. People look only at the big number and think hey $1.44 a gallon, great. Same thing with $49.99 instead of $50. All marketing.

Yep. That is the reason. Same reason that soda at the store is $0.99 and not an even dollar.

Others can google all they want. This is the correct reason.

Pretty sure that's not true. In one of my classes they explained it. Something about back in the day it was to persuade store workers to pocket the cash. When everything was an even dollar they could pocket the money if the customer had the correct amount. When they changed it to $0.99 it made it almost impossible for the total to come out to an even dollar.

- Kevin

 

[JC]

Actually, back in the days when gas was like 15-20 cents a gallon, some stations would undercut others by a few tenths, and it was a meaningful percentage (relatively). The practice just held over, but at $1.50-$2.00 a gallon it's really ridiculous. So now the only reason is the aforementioned consumer trickery.

 

[Kaervak]

Originally posted by: v3rrv3

Originally posted by: Vic

Originally posted by: Kaervak
It's marketing. Instead of $1.45 a gallon you get $1.44 and 9/10. People look only at the big number and think hey $1.44 a gallon, great. Same thing with $49.99 instead of $50. All marketing.

Yep. That is the reason. Same reason that soda at the store is $0.99 and not an even dollar.

Others can google all they want. This is the correct reason.

Pretty sure that's not true. In one of my classes they explained it. Something about back in the day it was to persuade store workers to pocket the cash. When everything was an even dollar they could pocket the money if the customer had the correct amount. When they changed it to $0.99 it made it almost impossible for the total to come out to an even dollar.

- Kevin

That's the explanation I got in my economics class, makes the most sense to me.

 

[DaviDaVinci]

Originally posted by: Cyberian

Originally posted by: DaviDaVinci
Mine's at $1.35 9/10

Those signs come pre-made from the gas companies. Retailers have little to do with it. Go complain to GWB.

Gas Stations have been using that pricing formula since GWB was in High School - I really don't think he's to blame.

Then blame his father?

 

[JC]

Originally posted by: EyeMWing
Same reason it's $1.59 instead of $1.60.

Actually, I noticed a station the other day that was priced at $1.80 (and 0.9, of course ). I thought it looked odd, they usually stick to prices that don't end in 0.

 

[Ly2n]

Originally posted by: JC
Actually, back in the days when gas was like 15-20 cents a gallon, some stations would undercut others by a few tenths, and it was a meaningful percentage (relatively). The practice just held over, but at $1.50-$2.00 a gallon it's really ridiculous. So now the only reason is the aforementioned consumer trickery.

Actually back in the day when gas was 15-20 cents a gallon, most stations would undercut others by whole cents and keep the .9. Even during gas price wars, when the price could be as low as 4-5 cents a gallon, they keep the .9. I cannot remember ever seeing gas at any price other than XX.9, except in Canada. The only possible reason is to make us believe that we are paying less than we really are. And I think that it works. If you are talking about the price of gas, and the price is $1.499, do you say that the price is $1.49 or $1.50? I know that I say $149.