Saturday, April 26, 2008

I'd like change for a penny, please.

As a child (when dinosaurs roamed the earth) I remember the local gas station selling petrol for 29 cents a gallon. Actually, it was 29.9 cents per gallon, which is where this little rant is going.
Now that gasoline costs more than crack, I think it's time to do away with the point nine cents at the end of the price. Here's a little exercise for you to try the next time you're drunk and/or pissed off:
Go to your local filling station and ask for a gallon of gasoline. When you pay for it, ask for your point one cent change. Watch and learn.
I know the psychology of the 99-cents at the end of every price. $1.99, $5.99 ... it makes you think it's a dollar less than you're actually paying. But that's OK, if you're stupid enough to think that $5.99 isn't six dollars, you deserve to be ripped off. At least the penny is an actual unit of measure. I haven't seen a Point Nine-cent piece, unless the mint is making sets and keeping it to themselves.
Do you think that we're really getting the point one-cent at the end of the road? No. It's priced into the per-gallon cost. If gasoline is advertised as $3.60 and nine-tenths, guess what? You're paying $3.61. I can't imagine a gas pump is calibrated well enough to give us a penny for every ten gallons pumped.
Round it up and finish screwing us. Putting it in 99-percent of the way just makes it more painful when you take it out.
This site on Arizona gas prices argues that the precision of nine-tenths gives motorists a "false sense of accuracy" over their purchase. It goes on to state that this method of pricing "requires that almost all purchases be rounded to the nearest whole cent," which benefits oil companies.
Dr. James Madachy believes it's primarily a marketing thing ("It looks cheaper"), but acknowledges charging nine-tenths of a cent can be unfair to the consumer. According to Madachy, the state of Iowa "outlawed the practice for four years during the 1980s." However, the movement (if you can call it that) didn't have much success.
Then, there's this that shows how those wacky Canadians do things.
Or this.
This came from Chevron:
A dealer does not have to use $.009 in his pricing. Historically however, the $.009 has been used as a marketing tool by many dealers. For example, rather than increase the retail price to the next whole 1.0 cent, a price of $1.59.9 may be more attractive to the price-conscious customer than the $1.60.0.
Sure. I'm a price-conscious consumer. I relish the 18 cents I save with every fill-up. Oh wait, it actually goes in Chevron's pocket because they charge to the whole cent. So, I'm screwed twice. Thanks.
Whatever the answer, "because it has always been that way" is an inadequate explanation. I think I abhor it so much because it's another dumbing-down procedure that plays consumers as dopes (which we are sometimes) and I can't stand being thought of as a rube.
I'm already being forced to purchase something that I am told I need. Don't compound the issue by making me feel like I'm getting a bargain in the process.
Aren't you glad I'm around to bring these sorts of things up?
You're welcome.

5 comments:

kimmyk said...

shit.
you're getting feisty these days.

must be all that fresh air clearing out the cobwebs that has you thinking so clearly huh?

and for the record-I've always known that $5.99 was really $6 bucks.

Quick like a bunny I am.

Firestarter5 said...

Our prices show up as the following:

124.9/l

AKA $1.249 which is basically $1.25.

I just know it cost me $60 to fill up my tank Thursday night, however, I did go 688 miles on that tank. Could have went well past 700 miles but I don't like to get below an 1/8th of a tank.

Scoobers said...

I think that NBC's The Fleecing of America may want to know about this!

It was a tactic when I was little to get my parents to buy me stuff. If the price read $4.99 I would tell them, "But it's only four dollars!" So, was I really lying? I dunno. Either way I had a better chance of scoring whatever it was that I wanted ;)

Anonymous said...

But they know that gasoline is a lot like crack. Just try to quit using the stuff.

Anonymous said...

When I was a lad the condoms were behind the counter at the pharmacy. A customer (male) would ask for the pharmacist (male) and then ask for "change for a penny" that being the code for condoms.. The pharmacist would bag up the item and ring out the sale.