But ... what would happen to the 99p shop in my town? They'd have to get a new sign

I don't mind it actually Brisket,  I always think how many thousands of odd pennies get dropped into charity boxes each day.

It is, as I'm sure you're aware, a psychological trick, and it really does have some effect at a subconscious level - like the way adverts imprint brand names in our heads. It's also, of course, a marketing device. It allows companies to claim their product costs "under £100" because it's £99.99. In my experience, shops can get very defensive about this: "So it costs £40, right?" "No! it's only £39.99!".


If it really bothers you, you should have voted Monster Raving Loony at the election: one of their main policies was the introduction of a 99p coin to save on change!

The reason for the price being 99p is because it is to make sure that the cashier does a legitimate transaction. If you give the cashier £1, then they must ring that up on the till and give you your penny change. Going back to when I was a child it was the same. We had things for 19shillings and 11pence for the same reasons. Hope this explains it Brisket.

It's the law of averages which baffles me.
When the costing is worked out - basic production cost, handling cost, relatailers cost, tax, (and any other costs I have forgotten), it is odd that it comes to  "something 99".
Some of you are saying that of course it doesn't and the 99p is employed as a psychological ploy.
I would like to see something priced at £3.02,  or £1.04, or 97p.
Just for variety really.

Well,Brisket, We have a price pounder near to us, and they have prices like that, £2.87, £3.63....etc.
Everything they sell is "something 99" and when you get to the till they then add VAT. Stupid way of doing it but thats what they do, so the prices come out at odd numbers.

I always thought it was summat to do with tax/VAT?

Good old M&S don't use the 99p very often - only in the food hall I think

As Eugene's Lair said, the 99p is used as £12.99 sounds a lost cheaper than £13.00 for instance. It has nothing to do with tax or VAT.
The pence part of M&S food prices can be anything and are not restricted to 99p. Clothes seem to generally be in round pounds. However when VAT was lowered from 17.5% to 15%, during that time M&S kept the amount excluding VAT at the same level so that for instance an item which at 17.5% sold for £20 was reduced to £19.57 (20/1.175*1.15).

It works on people like Mr Blizz.

I`m convinced he`s got Scottish roots.

Asda do that I prefer it really

**Directs Brisket to my web-site**