Many times you must have paid attention that whenever we buy something from mall or retail store, they are priced like 199, 299 or 599. Why is it done so? Why shopkeepers sell goods at 1 rupee less while they can sell it at round figures like 200, 300 or 500 respectively. This will also save him from hassle of returning of 1 rupee. Let me tell you, sellers get 2 benefits of keeping price like that.
Reducing price of any commodity by 1 rupee creates psychological effect on the mind of customer and he gets attracted towards buying it. For example, if in a mall, a shirt is priced at 499, we start reading this figure from left to right so that we can know its range. Some people would like to buy it as if they are buying it for 400. Sellers keep waiting for such kind of people only.
Keeping price low by rupee 1 provides benefits to seller only as whenever we buy something costing 500 bucks, we never ask for remaining one back. Because we think that we have purchased good for this much amount, what we will do of this 1 rupee. Some seller also handover toffee of poor quality as return of 1 rupee which seldom we do not take. Let me tell you, by not taking 1 rupee back also increases black money. For example, if a company has 200 retail outlets and in each outlet 100 customers do not take their 1 rupee back then in 1 year that company gathers black money of 73 lakh in one year. This money dont have any record in book or account.
Such kind of price tagging also remains there in online shopping site, however, here only reason 1 works because people gets attracted to commodities because of their low price. But reason no. 2 does not work here since full payment is done while making payment.
So now you will be knowing, why goods are marked at 1 rupee less price and customer has no benefit from it, whereas seller gets 2 huge advantages from it.
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