why do retailers add Rs99 to the end of their pricing?

WHY DO RETAILERS ADD 99 TO THE END OF THEIR PRICING?

Hey guys in this post we will discuss why the retailers of a particular shop add 99 or 999 to the end of their pricing.

At first it is the physcologically practises of retailers to sell the product at Rs99 or Rs999. let's understand this case by an example:

suppose you went to a market and you want to buy a trouser and you have a budget of  Rs900 and the cost of that trouser is Rs1000 then at first you will think that the price of trouser is quite high as the pricing is of four digits but initially if the cost of the trouser is 999 then you would initially think that it is fit into your budget and you will think it is not quite as expensive and you will consider the price to be of Rs900 and then you would surely buy it.

so this is the trick of retailers that they use to persuade more customers to buy their goods.

ADVANTAGES

The major advantage of this process is the retailers could easily earn a large amount of black money consider this case with an

example;

Let's take example of a multibrand store which has 20 outlets in different states. the consumer comes and purchases goods at pricing of 1999 rs.Initially the consumer would give a note of Rs2000. and after that payment he/she would never ask for a change of 1 rupees because he/she would hesitate talking Rs1 change from the retailer as because of people standing beside him and they would think that they would feel ashamed because of it. 

Now consider this case and assume in that particular retail store 30 consumers comes and purchases good and afterwards they do not take there change.so the retailer is easily earning Rs30 each day and their are 20 retail store in each state as mentioned above then it would be a total of Rs600 per day and considering monthly it would be approximately Rs7200.

so this Rs7200 are considered as black money as because they are not providing you the bill of Rs1 so it is directly coming into their pocket.

This type of practises has become most common nowadays but their can be a method to avoid such practises

using debit card or credit card will reduce such practises as you would only enter the required amount example- Rs99 or Rs999.

and it would not be a matter of hesitation rather everyone would appreciate that you are moving towards digital India.