This may or may not be considered an odd topic, but why is it that people/companies frequently price their products with; say… $19.99 instead of $20.00. Dont focus on the dollar amount, only the .99 amount.
Is this more of a mind manipulation, or is there actually a financial/tax/books reason for this?
Yes sir. But never, never cheat the customer on shipping. That's a quick and easy way to lose business over a dollar.
Personally I like the flat rate... it seems fashionable.
My shipping rates are usually bang on. I sent a shirt to the UK today. They payed $6.50 US for shipping, and my cost was $7.00 cdn. I actually lost about a dollar on the packaging.
I was under the impression that fractional dollar amounts were originally instituted so that cashiers would have to open the register to give change, and thus could not pocket a bill without breaking it and having the sale recorded.
I wonder if it's one of those "so simple we forget it" things, or one of those "elegant explanation after the fact... that happens not to be true" things.
Obviously it wouldn't stop money being pocketed, but it would make it harder.
There's also the psychological benefit to the customer of the cashier opening the till to hand back change, however small that change is. So that's two good reasons to make them open the cash register.
Yea, I figured as much... about the manipulation. Never know though so though I would ask.
Speaking of sales tax, dont some states actually incorporate the tax into the final price and then post that price on tags? I live in Texas and we see the price before tax on sales tags, which i think is irritating personaly. But then again, it may fool some people into buying more...
XX.99 
It's just a sales tactic. It subtly implies that the price is much lower than one cent.. "19-something" rather than "20-something".
