the penny (one-cent) debate

[DeletedUser]

there has been many arguments about the elimination of the penny (in the United states) including two legislative bills (the Legal Tender Modernization Act and the Currency Overhaul for an Industrious Nation (COIN) Act) supporting the removal of the penny from our current system of currency.

what are your thoughts on the removal of the penny from our current currency system. (if anyone wants to add their equivalent to the penny please do so)

I fell that we should have some equivalent to the penny even if we change the penny to some other material.

 

[DeletedUser]

Well if it's removed the prices of groceries will increase since everything will be rounded up to the nearest whole number and people will have to pay more. On the other hand pennies are worthless and there's nothing you can buy except maybe a few sweets for a few pennies.

 

[DeletedUser]

Seriosly... do people actualy get change from 1$ if they buy something worth 99 cents? I only remember some shopping centers giving me change like that, the rest would just tell me to bugger off. It's just a marketing invention to make people think they are paying less.

 

[DeletedUser]

It's an old debate. I disagree that prices would go up. As it is now, something rarely costs $10.00, but it's more often $9.99, so the price will be seen as "under $10". Instead of the price becoming $10.00, the also common $9.95 will become the norm.

 

[DeletedUser]

They put it as 9.99$ because they want to lure you into thinking that, inside of 10$, it is a penny cheaper. We eliminate the penny, I don't think shopping centres would give away another 4¢.Every year they sell out about five million products( how much is it?) and with the 4¢ piling up, it is worth a lot of money.

 

[DeletedUser]

They put it as 9.99$ because they want to lure you into thinking that, inside of 10$, it is a penny cheaper.

I just said that

We eliminate the penny, I don't think shopping centres would give away another 4¢.Every year they sell out about five million products( how much is it?) and with the 4¢ piling up, it is worth a lot of money.

And you're wrong. Like I said, $9.95 is almost as common as $9.99 for the same reason. Get rid of the penny (or any country's local equivalent) and everything would be $9.95. Lost sales due to losing that "under $10" impression would cost them more than the 4 cents per.

 

[DeletedUser15641]

It's an old debate. I disagree that prices would go up. As it is now, something rarely costs $10.00, but it's more often $9.99, so the price will be seen as "under $10". Instead of the price becoming $10.00, the also common $9.95 will become the norm.

A business wants to profit not lose any profit if its sees that the penny is gone it would raise prices just to get more cash.Why decrease 5 cents?While we can add just one to make a slightly better profit.

 

[DeletedUser28032]

Because the customer says "Wow thats 4p cheaper than last time" and then proceeds to buy it. Because £9.95 is perceived as being cheaper than a round £10 someone will buy more of it because "Its a bargain" than they would if it was £10.
Essentially it would absolutley no difference all it would mean was i would have to find something else to glue my wargaming figures to.

 

[DeletedUser]

tug and Glorry don't get it

Pricing is a powerful marketing strategy in increasing purchases if priced right. You can take it up to the next level and increase the success rate by adding an additional 99-cent to the pricing. Have you ever wondered why so many businesses use that dreaded 99-cent in their pricing strategy? Consumers perceive 99-cent as cheap; $14.99 looks much cheaper than $15 even if it’s off by 1 cent.

The psychological effect of adding 99-cent to the dollar value works wonder for prices like $99.99, $89.99, $79.99, $69.99 and etc. The consumers analyze and conclude that the product hasn’t reached the next bracket [100, 90, 80, 70,] and think it is a steal. Manipulating the price to make it look like a bargain is a powerful psychological strategy used in marketing for the best ROI.

http://marketingdeviant.com/psychological-effect-of-99-cent/

But maybe they'd go even lower to have the same effect:

Will 49-cents be the next great number? Is a hypothetical guess, but I believe it will do well since it is less than 2 quarters which can have a very powerful psychological effect for consumers. Finding the next perfect psychological number takes research and experimentation.

 

[DeletedUser15641]

You can't actually guarantee that they would rather buy a 15$ priced item .......than the 14.95$ item...i know it would be a lot more people who would rather do that but how many are exactly enough to make 14.95 better than 15$ as a profit maker?

 

[DeletedUser]

Pennies are useful. There is a service station near me, and people just drop them on the floor. In one morning alone you can find a fivers worth.

 

[DeletedUser28032]

You can't actually guarantee that they would rather buy a 15$ priced item .......than the 14.95$ item...i know it would be a lot more people who would rather do that but how many are exactly enough to make 14.95 better than 15$ as a profit maker?

You have £15, there are two items that are exactly the same in style and quality. One is priced at £15 and the other id priced at £14.95 which are you going to buy?

I only need one more person to buy the £14.95 item than the £15 item to make a profit and if all it takes is to convince one person that a 5p reduction in price is a bargain then i am up on the deal.

 

[Diggo11]

I fell that we should have some equivalent to the penny even if we change the penny to some other material.

You do if you pay by credit/debit card.

While you're at it, why don't you use the millions of dollars you'd waste minting it over the next decade to overhaul your whole coin system? Aside from the penny, they're all about the same size, weight and appearance. Not to mention those dirty, indistinguishable banknotes made of paper...

 

[DeletedUser]

While I understand where TUG and Glorry are coming from, 5c isn't a big difference. More likely than not, a customer will buy the $14.95 item over the 15$ item because it looks as if its alot cheaper than it actually is. With that said, those customers that would've bought the $14.95 item and not the $15 start to add up, and they make your profit.