Reality and Sanity

May 28, 2006

Rounding Up Them Prices

Filed under: Marketing/Advertising Tricks — Paul @ 8:29 am

Betsy says "Don't Trust that Nine-Tenths of a Cent at Your Gas Station." 

As we all guessed, when you buy a gallon of gas, you're not paying in fractions of a penny. They're actually rounding up. And there is no good reason to advertise their prices that way except to fool people into thinking that gas is actually a penny less than it really is.

This is one of the oldest techniques in the marketing playbook; that why many retail prices are set at levels such as $5.99, $49.99 or $399.99…to get people to think that prices are lower than they actually are.

Why would gas be any different? 

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