Petrol Prices

Chriss · World Chat Champion Joined: 07 May 2005 Karma :

Why are petrol prices always .9p? I've heard people say so it looks cheaper, nothing else is sold with .9p difference? If it's 100.9p, why not just call it 101p?

I know the pump computers often goes further into the decimal places than is displayed. Shocked

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TheShaggyDA: I've got 3 or 4 pairs that predate my wife, so at least 11.5 years old.

Mystery · World Chat Champion Joined: 23 Jul 2009 Karma :

not sure but i guess that 0.1 that you saves adds up after about 20 years of buying petrol hahah Laughing

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Gunny · Nitrous Nuisance Joined: 20 Apr 2009 Karma :

Dunno but every time i put in a tenner at our local Shell by the time i get into pay its mysteriously become £10.01 Evil or Very Mad

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Chriss · World Chat Champion Joined: 07 May 2005 Karma :

bacon · World Chat Champion Joined: 09 Jan 2009 Karma :

D O G · World Chat Champion Joined: 18 Dec 2006 Karma :

Its psychological marketing, exactly the same reason why most things are £2.99, or £9.99 etc.

Interestingly, they even priced goods like this in Australia, where the smallest coin was a 5c piece.

If you paid for a $9.99 item with a $10 note they wouldn't give you change.

Now that is crazy.

ms51ves3 · Super Spammer Joined: 07 Jun 2007 Karma :

D O G · World Chat Champion Joined: 18 Dec 2006 Karma :

What the hell are you talking about?? Whistle

map · Mr Calendar Joined: 14 Jun 2004 Karma :

JAMSXR · World Chat Champion Joined: 18 Jan 2007 Karma :

Wafer_Thin_Ham · Super Spammer Joined: 18 Nov 2005 Karma :

angryjonny · World Chat Champion Joined: 01 Sep 2006 Karma :

It's nothing more than a psychological trick to make you think it's cheaper than it is. Exactly the same trick that stores use when they price things at £9.99 rather than £10.

If one petrol station advertises its petrol at 103p/l and the one across the road has it at 102.9p/l guess which one is going to have the queues outside it.

My guess is that they're allowed to do it by trading standards as you buy petrol in indistinct multiples (15.72 litres or whatever) so there is always going to be some rounding involved. A shop couldn't advertise something for 99.9p as they couldn't give you change for your tenner.

JAMSXR · World Chat Champion Joined: 18 Jan 2007 Karma :

Chriss · World Chat Champion Joined: 07 May 2005 Karma :

Clanger · Stirrer Joined: 27 May 2004 Karma :

It is due to marketing strategies. Prices with with .99 are usually associated with being much cheaper than those at .00. It seems crazy, but it has been proven to have a much greater impact on sales, than any other pricing structure. Thumbs Up

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Chriss · World Chat Champion Joined: 07 May 2005 Karma :

So why doesn't a petrol station advertise it as 102.8? Look even cheaper, and still has a very similar effect with rounding it up, except you lose a penny every 5 litres.
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TheShaggyDA: I've got 3 or 4 pairs that predate my wife, so at least 11.5 years old.

The Original Muzza · World Chat Champion Joined: 09 Jan 2009 Karma :

Petrol companies take advantage of people's inability to think. You save 1 pence for every 10 units you buy, and nothing inbetween that.
Cool, if you have a 100 litre tank that's saving 10p. That'll be £99.90 please sir.
If I see 2 petrol stations, 1 with 99.9p/l the other with 100.0p/l, you know which one I choose?
The one with the credit card pump. Infact those things are so valuable to me, I'd sooner pay 5p more per litre just not to hassle myself with people. In fairness, I usually only stick a tenner in the tank as I never run to reserve, so that's only 50p difference.
If neither of them have credit card pumps, what's the next deciding factor? Anthony Worral Thompson sandwiches. I think it's shell garages that do these. He may be a twat, but those sandwiches are the best pre-made sandwiches money can buy, bar-none. Marks and Spencers have nothing on this cat, they rock the sandwichbah.
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map · Mr Calendar Joined: 14 Jun 2004 Karma :

Mystery · World Chat Champion Joined: 23 Jul 2009 Karma :

mchaggis · World Chat Champion Joined: 09 May 2004 Karma :

Think I read a story a while ago saying that it cost the shops more in wasted time spent giving the penny change than it gained them in higher footfall. There is a change afoot to start charging in whole pounds.

If you were paid for your time in the shop and wait an extra 10 seconds to get a penny change, you'd only have to be earning £3.60 an hour to make it not worth your time waiting!
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The Shaggy D.A. · Super Spammer Joined: 12 Sep 2008 Karma :

The answer is "because they can".

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Mystery · World Chat Champion Joined: 23 Jul 2009 Karma :