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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Mechanical Investing
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Author: AlphaWolf ✸✹🐝  😊 😞
Number: of 6243 
Subject: Re: Chickenhawk Don’s Desperate Gamble...
Date: 03/20/26 12:44 AM
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Interesting.

Never heard the “reduce theft” explanation before. I always heard that it was psychological.

Here’s what AI replied to my inquiry:
Prices ending in .99, known as "charm pricing" or "psychological pricing," make items appear significantly cheaper by leveraging the "left-digit bias," where consumers focus on the first digit and perceive $19.99 as closer to $10 than $20. This strategy signals a bargain, increases sales, and reduces the perceived mental effort of purchasing.

Makes more sense to me for 3 reasons. Even if an item cost $4.00, there would be sales tax added, so you have to use the cash register. Also, how many people pay with the exact amount? Most people would pay with a larger bill and expect change. Lastly, cashier theft would show up in higher inventory shrinkage, triggering someone to examine what’s happening, even in the good old days.

Here’s a recent Readers Digest article on the subject:

rd.com - Why prices end in
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Members reply directly to AlphaWolf here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 86,214 posts about US Policy. The article-length ones it recommended most:
It's going to get worse · 33 recs · 2025
G’day Donny · 30 recs · 2026
Old Related Story · 28 recs · 2026
HCR is a national treasure · 27 recs · 2025
Fascism in America · 27 recs · 2025
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