# Why is it that almost every time someone walks into a retail store, almost every thing cost a dollar amount with 99 cents at the end?

I've noticed for years that the subtotal prices for things in retail stores and restaurants cost a certain dollar amount with the number 99 cents to the right of the decimal point. Logically and mathematically speaking, it would make more sense just to raise the prices for foods and products up 1 cent. That way, the prices for foods and products would be even and would make more sense.

Which is why i'm asking why is it that almost every time someone walks into a retail store and/or restaurant, almost every thing cost a dollar amount with 99 cents at the end? Please give me details with a source or 2 with your answers, if any of you can! That'd be very greatly appreciated. A source or 2 with each and every answer isn't exactly needed, but it's so very preferred.

Relevance
• kswck2
Lv 7
4 weeks ago

Because psychologically, \$1.99 SOUNDS cheaper than \$2. Why do you think that gasoline is sold at a dollar ninety nine Point nine, instead of \$2.

• mokrie
Lv 7
1 month ago

It's a fact that people will buy something that is 1.99 much faster then they will buy something priced 2.00. It's a psychological thing since the brain only takes in the 1 and that seems much cheaper then 2.