Why is a 99p price tag so attractive?

The tactic of shops ending prices with 99p is nothing new, but a study has found it's as effective as ever in getting shoppers to part with their cash. So why is one of the oldest tricks in the retail trade hard to resist?
In terms of familiar retail ruses employed to entice shoppers to part with their money, ending price tags with 99p, rather than rounding up to the full pound, is right up there with buy one, get one free promotions and half-price offers.
But according to a French study the phenomenon still swings a considerable number of shoppers. Researchers found that lowering the price of a pizza from 8.00 euros to 7.99 euros boosted sales by 15%.
For consumers, the saving is minimal and the copper coins they receive as change when paying with a note seem to be more of a hassle than a benefit - in 2005, Britons discarded or stashed away £133m in unwanted coppers, according to Virgin Money.
So if shoppers aren't concerned about saving mere pennies these days, why are they falling for the 99p effect?
Emotional difference
One theory is consumers just aren't up to the maths. Dr Jane Price, lecturer in psychology at the University of Glamorgan, says we "tend to put numbers in categories like 'under £5' or 'under £6' - rather than them representing a value. Shoppers are aware of what is going on, but don't respond to it because they don't think logically about how close numbers are - such as £99.99 and £100."
She thinks shoppers tend to focus on the big denomination - which the pound sign draws the eye to - rather than the smaller denomination: the pence. There is also the emotional incentive - people like to feel they are getting better value for money.
Robert Schindler, professor of marketing at Rutgers Business School in the US, has published several papers on the "99 effect". He expresses it slightly differently, observing that people overweigh the left hand number.
"When a price changes from $30 to $29.99, the change from three to two makes more of a difference than the value of that money could predict," says Mr Schindler. "It is like when a 39-year-old turns 40, the birthday feels like a big deal. Or when 1999 ends and 2000 starts. It feels like an emotional difference."
Discount associations
It's sometimes suggested the "99 effect" was adopted as a control on employee theft - cashiers had to open the till for change, reducing the chances of them pocketing the bill.
But Mr Schindler thinks it has a different origin. It was introduced for sale items, to emphasise the discount.
"I studied adverts in the New York Times from 1850 - where there were no 99 endings - to the 1870s and 1880s where they started to appear. Although department stores were doing it - which would fit with the cash register hypothesis - they were advertising discounts. But for the regular price they would use a round number," he says.
He thinks the retail practice developed from there, to communicate discount or the impression that things are on sale - even when they are not.
But it is a subtle effect, which works when consumers are susceptible to price sensitivities and are making a snap decision, rather than deliberating over big items like cars and houses. And high end brands which exude a classy image tend not to use the tactic.
Pressure on income
Nick Gladding of Verdict Research, is sceptical shoppers are fooled by the "99p effect". However, in these more straitened times, even tiny adjustments in price can be enough to win over hard up consumers.
"We are seeing fuel prices going up and down by 1p - it is a tiny amount of money, but people want to hear about it," he says.
So are there any other numbers that the unsuspecting shopper should be aware of?
A .95 ending is also popular, observed Mr Schindler, although anyone shopping in Asia might be struck by how prices often end in .88. The reason? Eight is an auspicious number in countries such as Japan, Hong Kong and mainland China.

save money smarter

Feeling short of money? Make more and spend less!
You want to go where money is? Watch prison break first!
It's so much easier said than done to save money. Well, somebody has given lists such as cutting your coffee, less entertainment, less shopping (no, you are killing me)... That works for your money but not for your life, because you save for a better one.
To better manage your money, here comes some tips:
First, set your goal in short-term and long-term. There must be something you want in desperation, like a car, a macbook. You will figure out what to cut to have your dream come true. Yes, you are not really saving money here, but you find the ways.
Second, make a budget and prioritize your spending. Track your monthly expenses and calculate the average for your regular payments (Rent, Phone Bills, utilities, gas etc.). Shopping and entertainment may change from month to month, set a minimum. When you have a total spending plan for the next month, save all the surplus for investment or open a savings account.
Third and the smarter way, when you have to buy something, find a cheap one. Actually this is easy because you are online. DO NOT save your cable expense.
The Internet has changed our way of life: Users get greater access to information than ever before. It also offers many opportunities for saving money. As online shopping has become more and more popular, businesses have been pressured into not only maintaining an online presence, but also competing for a thriving global consumer base. Online deals and specials are powerful persuasion for potential customers, and are therefore used by many retailers. If you know where to look, you can find many ways to save money online, such as traditional coupons that you can print out and carry with you, and online coupons that use links or coupon codes to save you money.
There are two ways applying the discount for online stores: linked coupons and coupon codes . With a linked coupon, you simply click on the link, and it takes you to the online store via a special URL; then when you finish the shopping, your savings will be applied to your shopping cart automatically. A coupon code is a special code you will need to enter when you check out. Because online stores depend on online coupons and promotions to boost sales, these codes are very easy to find. There are many websites dedicated to listing current online coupons and coupon codes such as couponcabin.com , couponsmarter.com etc. Most of these sites offer a search feature to help you find exactly what you're looking for.

Swimming Pool Fun Stuff

Want to put a little festive fun into your swimming pool or day on the lake? Make it happen with various products that add a little flair. We've put together some of the most entertaining products we came across that you would enjoy . Need an inflatable water lounge? Try online at Avendales. How about a floating pool cooler? They have that as well. In fact, there are hundreds of items just waiting for you to check out so take a look at some of these hot prospects when you get a chance.
Towable Inflatables
While we gear this towards swimming pools, towable inflatables are more for lakes, rivers, and streams. When owning one of these, you will enjoy the newest technology possible with various handles, EVA padded support, and intriguing aerodynamics. Heads will turn as you cross the open waters, filled with excitement and staying comfortable at the same time.
They carry single, double, and multi-riding towables for your weekend pleasure. Interestingly enough, they offer large discounts on all their items so you don't have to dig too deep into your pocketbook. Who would have thought that having fun and saving money at the same time would go hand in hand. There are 33 towables in all, along with pumps, ropes, and canopies as well.
Inflatable Playstations
If you have kids who aren't quite old enough to tackle the lake waters, the inflatable playstations for your swimming pool are great alternatives. Twenty-one options in all, they offers Super Slope, Arcade Shooter, The Boathouse Floating Habitat, and much more for every occasion. There is something for all ages between toddler to teenager and we might know a few adults wanting some of these as well (like the Fireboat Squirter).
Want your kids to be the talk of the neighborhood? Anyone who comes over and takes on the Inflatable Amusement Park is in for the time of their life. Probably one of the best options available, this piece includes a water slide, pool, sprinkler system, tunnel system, and climb wall. It's the ultimate play area for kids all around the neighborhood.
The Floating Pool Cooler
Whether you're having a party or it's time to relax, the Floating Pool Cooler is a convenient item for several occasions. This product allows you to spend more time enjoying the rays and water as opposed to constantly getting in and out of the pool for beverages or food. The zipper lid keeps everything cold and with several cup holders placed around this contraption, you won't have to worry about spilling anything. They are available in two sizes in both 60 and 120 quarts. It just depends on how many people are coming over.
Our Final Thoughts
It won't take long for people to start asking where you found all these fun and unique swimming pool stuff Basically setting you apart from everyone else in the neighborhood. The unwritten rule of competition between households is always interesting to watch. However, when everyone's talking about you, it's much more enjoyable.
Keep in mind, the items we've discussed above are only scratching the surface. In a time when saving money is important, this company gives huge discounts to help you along the way. Hopefully, they'll fulfill your needs with items that set themselves apart from everything you've seen before now. When you take a look in a minute or two, you'll see what we're talking about. Enjoy!