CASH REGISTERS AND CHARM PRICING

Pay close attention to prices and you'll notice that hardly anything ends in a zero.

• A standard Netflix subscription costs $19.99.
• Target had an online sale on Pokemon Crocs last month for $49.99.
• A variety pack of LMNT electrolytes went for $26.91 on Amazon.

These last-digit choices likely weren't made at random. The practice of intentionally ending a price in something other than a zero is often called charm pricing.

For decades, researchers have found that retail prices ending in precise numbers, often a nine, occur way more often than chance would predict. It's one of the oldest psychological tricks in the capitalism playbook, dating back to the 19th century and enduring today.

In fact, charm pricing has been in the news recently. In 2025, the US stopped producing new pennies, prompting issues among retailers and consumers who lack the needed coins and leading to proposed legislation that would round prices at the register for cash purchases — and allow charm pricing on the shelves to continue.

A simpler solution might be for retailers to stick to prices that can be paid with coins that still exist. But many other countries have also eliminated their lowest denominations, and businesses rarely go that route. The costs of giving up charm pricing seem too great.

How, exactly, did .99 pricing become so powerful? And will the spell of charm pricing continue, as the US penny fades into memory?

The story of charm pricing begins in 1879 with James Ritty, the proprietor of The Empire, a saloon specializing in fine whiskies, wine, and cigars.

Despite an invariably packed bar, Ritty's business was struggling. He believed his bartenders were pocketing cash after pouring drinks, and the suspicion provoked something of a nervous breakdown.

He set sail for Europe to convalesce. On a tour of the ship's engine room, he was riveted by a mechanism automatically recording the movements of the ship's propeller. He thought the same principle could be applied to a machine for counting coins in his store: an "Incorruptible Cashier."

To read the complete article, see:
Why you're more likely to buy something for $4.99 than $5.00 (https://thehustle.co/originals/why-youre-more-likely-to-buy-something-for-499-than-500)

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