why do they make it 99 cents instead of a dollar?

I think nearly everyone that has answered so far has been wrong! (Maybe it's ME that's wrong, but I don't think many people are so stupid they don't realise that "$2.99" is basically three dollars!)

It has to do with the amount of tax collected. The government already give businesses a small "break" on taxes they collect on behalf of the IRS. If you sell something for $1.00, you charge your customer $1.07 (if the rate is 7%) and you send 6cents to the IRS. If you price something at 99 cents, you STILL collect 7 cents tax (you charge your customer $1.06).

On a single sale, this increases the difference between what you took from the customer and what you must send to Uncle Sam by a tiny fraction of a penny, but if you sell, say, four million 99c hamburgers, pretty soon you are raking in a huge pot of "unseen revenue"....

Nice work if you can get it!

It's a psychological thing. $3.99 sounds cheaper than $4, so you'll buy the product sooner.

Steph, marketing is what they call it.Just like gas (petrol), is $2.97 9/10ths per gallon. This came into being in the early years of the 20th century, by a guy named Woolworth. He became very wealthy by using this as a marketing ploy. But it still comes down to saving that penny.

To trick you into questioning it expenses under it surely does. as an occasion, if a save have been to have a rack that pronounced $.ninety 9, as antagonistic to $a million.00, they might purchase greater, even although there is largely a a million cent difference. it relatively is a sleazy trick and its unlucky that maximum of shops and retailers hotel to something like that, in spite of if it relatively is their livelihood.

because people are always looking for bargains and $3.99 sounds way cheaper than $4.00 even though it is only a one cent difference.

Because it sounds cheaper. Although anyone with moderate intelligence can figure it out. Three still sounds cheaper than four.

Think of it this way:

Recently, I was in the store, and saw a pricetag for something. It said $299.95. I thought to myself, "Wow, two hundred bucks!" before I shook myself and realized that it was three hundred.

Which sounds cheaper:

"That'll be $299.95, please."

"That's three hundred bucks."

So you think its cheaper in your mind. Something that costs 9.99 is "less than $10" in yourd mind when you are trying to convince yourself to buy it.

i dont know? thats a good question. probably because it caust allot more money to advertise 4.00$ than it does 3.99$

Psychology. And yes, it really does work. Sad but true.