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From: absary@watdragon.UUCP
Newsgroups: ont.general
Subject: Re: Sunday shopping hours (again).
Message-ID: <2415@watdragon.UUCP>
Date: Sat, 7-Mar-87 12:58:21 EST
Article-I.D.: watdrago.2415
Posted: Sat Mar  7 12:58:21 1987
Date-Received: Sun, 8-Mar-87 12:00:16 EST
References: <5626@watmath.UUCP> <7746@utzoo.UUCP>
Reply-To: absary@watdragon.UUCP (Al Sary)
Organization: U. of Waterloo, Ontario
Lines: 11

>The problem is that if the $4.99 prices get a foothold, they drive out the
>$5.00 prices, because pricing something at $4.99 results in higher sales
>than pricing it at $5.00.  The difference is much larger than one would
>expect from a one-cent price drop, because the key issue is that customers
>subconsciously perceive $4.99 as significantly cheaper than $5.00.  There's

That's partly what I was getting at in my previous article when I said
that including the sales tax in the price is the wrong business decision.

Is that the usual tactic followed by most European countries?  I know
Germany does it, and I seem to remember that so does England.