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What is the term for pricing items just below a significant value (e.g. $19,995)

It is common on price tags to use $3.95 instead of $4.00 to make items appear cheaper. Is there a name for this practice? See also this closed post on Skeptics for context.

  • what? You want us to tell you that the word for price tags is price tags? Or are you looking for price? – Matt E. Эллен Aug 19 '11 at 15:34
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    Please don't downvote a question because you don't understand it... – Jeremy Aug 19 '11 at 15:37
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    @Jeremy - poorly asked questions should be down voted. That is what down voting is for. – Matt E. Эллен Aug 19 '11 at 15:39
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    @LouisRhys I did what I could, but if there is more that you want to add, you should edit your question and add it. Leaving it in the comments makes it difficult to find. – Kit Z. Fox Aug 19 '11 at 15:55
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    I am 99% sure I know the answer to this one... – JeffSahol Aug 19 '11 at 16:23

After searching around and reading a bit, the only place I saw someone actually use a term for it was here, where it is referred to as odd pricing.

Odd-even Pricing. Most supermarkets tend to use the so-called “odd” prices—those ending in .99 or .95—rather than round dollar figures. Many believe that this practice is intended to make prices seem lower than they are. For example, $2.99 could be seen as “two dollars plus ‘change’” rather than “almost three dollars.” Research shows that consumers are slightly more likely to purchase at these odd prices, but the effect is not large. Odd prices may send a signal that a product is a “bargain.”...


I found this article on Wikipedia. It uses the terms psychological pricing and price ending.

Psychological pricing or price ending is a marketing practice based on the theory that certain prices have a psychological impact. The retail prices are often expressed as "odd prices": a little less than a round number, e.g. $19.99 or £2.98. The theory is this drives demand greater than would be expected if consumers were perfectly rational. Psychological pricing is one cause of price points.


I have seen this called “price points” and “price rounding rules” in retail pricing software.

  • In my experience, "price points" refers to the retail price; one might use odd pricing as a means of determining a price point for instance. – Kit Z. Fox Aug 19 '11 at 15:57

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