petrol prices

[NEVCAR28]

Can somebody explain why generally petrol at a petrol station costs 89.9 or 87.9,etc...Why do they have these .9's on the end.Why don't they just round it up to the nearest penny.

[nic3c]

Probably just to make it sound cheaper, like lots of things in the shops have 99p on the end.

[KebabMeister]

I think market research have found that when something is priced at, say, 87.9 you remember it being as '87' and not '88' even though it is closer to 88 (people will say it's 87 something).

[KJN]

Here goes, something from an old boy;- the reason why most goods are priced at .9p and are not rounded up is due to the fact that in the old days it was found that if somebody went into a shop, pub or where ever and the cost of the goods were rounded up they would give the correct money and walk away thus leaving the salesperson to put the rounded up money into their pockets without ringing this up on the till, whereas if all goods are priced up to the .9p you stand and watch the salesperson ring the money up on the till and wait for your one penny change, thus not allowing them to pocket your cash... SAD BUT TRUE..

[nic3c]

So the petrol stations/shops choose to lose money...? Surely there is an element of making things sound cheaper to the consumer aswell?

[wallis1007]

I understand what kjn is saying, but how can that work with fuel? The amount of people that dont fill up, but put �20 in surely would pay with a �20 note and walk out! Just a thought. By the way why do people put �10 or �20 of fuel in instead of filling up, it's no cheaper and you spend more time in petrol stations!

[KJN]

nic3c I agree with your posting too and have not disputed same in mine just trying to post another reason why the .9p is or was used. As far as petrol stations/shops loosing money is concerned IF I was the owner of a petrol station/shop I think I would rather loose one penny on each sale rather than loose lets say �10 to �20 or more in one non till transaction.

Happy New Year

[Toureman]

To answer Wallis...............

It is cheaper to put in �10 or �20 pounds worth of fuel at a time, it saves lugging around up to 100 pounds of fuel at a time so getting more miles per Gallon!