With gas prices on the rise, y do gas stations show 9/10 to their price why not round up?

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Answers:

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It's a marketing gimmick, makes the price seem lower (as in "under $20!!" when something costs $19.99). It's misleading, since you always end up rounding up anyway. You can't charge (or pay) 9/10 of a cent!

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(Yes, it's 1/10 of a cent, not of a dollar!)

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its a sales marketing tool

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you are lucky! here in the UK we pay just under 10 $ per gallon!

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Because rounding up would make the price look higher. It's like the $2.99 instead of $3.00 concept.

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Sales and marketing. Because when we see gas at 3.25 99/100 cents, we say $3.25, not $3.26. Bfd, I agee on that point.

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It's ALWAYS been like that...for as long as I can remember. I guess they just want to make it look one penny better.

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Gas here is $2.55/gal for regular.

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because most people dont pay attention to that so they think they are getting it for less, its just more revenue... even that nine tenth of a cent.

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Same reason applainces are $299 or automobiles are $21,999..to make them appear cheaper. Mind games!

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It has always been that way. Since the begining. It looks better when you see the smaller number than if they rounded up. Funny thing- I worked for a gas station-convenience store as a manager. They are only making 1-2 cents per gallon. It is all the other stuff in the store that you buy that makes the money for them:)

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BECAUSE THEY THINK WE ARE IDIOT'S

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Because that's the way they've always advertised it. In the 50's a tenth of a dollar actually meant something. My Dad would drive around looking for a station that was 1/10th lower. Now that pricing is a farce perpetrated by the nonsense notion that we actually perceive the price to be lower by 1/10th.

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you americans complain about your prices, try buying motor fuel in Ireland! i wish our population was like yours though, at least you have to sense to question ridiculous price increases.

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To make you feel like you are paying a penny less.

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Marketing ploy to make the consumer think they are getting a better price.

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Most people don't factor in the 9/10ths, so they get the idea fuel costs less, although, that one penny does not amount to a lot on one fuel stop, maybe 25 or 30 cents, but the seller makes a few bucks off of the oversight, same as a car dealership, a car selling for 4999.99 is not nearly as much as 5000 dollars. It is a sales gimmick.

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Sales gimmick, we're full of them in the good ol U$A.can't help wondering what will happen if the penny really does go extinct...currently costing more than its worth to produce....
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