Why is nine tenths of a cent still tacked on to the price of a gallon of gasoline? Gas taxes are here to stay.
nine tenths of a cent
- Thread starter OneEyeJack
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You can thank the marketing geniuses.
It was there for so many years, no station is going to change that.
So it *looks* a penny cheaper. It's lame but everyone does it. At least it's consistent
The 0.9 cents was significant when gas was 27 cents a gallon.
Stations around me just price it to the nearest penny...
But you would have to be really, really bad at math to go anywhere out of your way for a 0.9 savings per gallon when your car costs 50 cents a mile to run....
Stations around me just price it to the nearest penny...
But you would have to be really, really bad at math to go anywhere out of your way for a 0.9 savings per gallon when your car costs 50 cents a mile to run....
I hate that stupid little 9!
Started back in the 1930's.
Psychologically, it's a marketing ploy that equals to millions of dollars in extra profit each month from all drivers collectively.
Psychologically, it's a marketing ploy that equals to millions of dollars in extra profit each month from all drivers collectively.
It's been around a long time. My dad said he remembered it from when he was a small boy in the 1930's.
I saw a Sunoco in Ohio a while back that had 86 economy unleaded for 1.398 and 87 octane regular for 1.399.
Something in me thinks it's exactly the same product.
And you know in the "gas station price number bin" they have some 8/10 rectangles gathering dust.
I wonder who bought it. My grandpa lived out there and left off the sales tax when he computed tips, and declared it to the whole restaurant.
Something in me thinks it's exactly the same product.
And you know in the "gas station price number bin" they have some 8/10 rectangles gathering dust.
I wonder who bought it. My grandpa lived out there and left off the sales tax when he computed tips, and declared it to the whole restaurant.
He's smart.
I remember seeing 6/10 of a cent in several western states.
Are any of those still around? Kira
Are any of those still around? Kira
There's a company here that sells gas by the 1/10 gallon. They're mostly a card-key operation but one can go inside and ask for the "cash key".
I screwed up the first time around and bought $xx.00 worth like a normal person. They asked how many gallons? 6.264, they rounded up to 6.3000 and then multiplied it by their price, including the 9/10.
I was aghast, but everyone rounds heating oil to the 1/10 gallon as well.
I screwed up the first time around and bought $xx.00 worth like a normal person. They asked how many gallons? 6.264, they rounded up to 6.3000 and then multiplied it by their price, including the 9/10.
I was aghast, but everyone rounds heating oil to the 1/10 gallon as well.
Have worked in service stations where we used the other decimal points. 4 gas stations on a crossroads, and a tenth here and there (per litre) makes punters take notice.
The bloke over the road (Chris Clearihan) in the "Solo" service station on the opposite corner used another technique when the going got tough...he would get Sophie, his attendant to wash his white Countach in a bikini...we didn't sell much petrol those afternoons, and really didn't mind too much not being busy.
The 0.9 works...my wife and daughter will see $1.46...my Son and I will see $1.47 when it comes to $1.469 petrol.
The bloke over the road (Chris Clearihan) in the "Solo" service station on the opposite corner used another technique when the going got tough...he would get Sophie, his attendant to wash his white Countach in a bikini...we didn't sell much petrol those afternoons, and really didn't mind too much not being busy.
The 0.9 works...my wife and daughter will see $1.46...my Son and I will see $1.47 when it comes to $1.469 petrol.
Just out of curiosity, I filled out a spreadsheet using 200 volumes of fuel in 0.05 gallon increments from 0.05 gallon to 10 gallons.
Plugged in a fuel price of 2.499/gallon
Calculated the simple price volume * price.
Created a column where the price was rounded to the nearest cent.
Created a column reflecting the rounded price minus the calculated price. Let's call this +/-
Summed the +/- column.
Over the 200 sampled values, there is a 0.005 advantage to the gas station.
If it really means that much to you, you can calculate the price * volume and see if the value where you stop is upto $0.005 in your favor or upto $0.005 in the favor of the station and act accordingly. Most times less.
Doesn't seem to matter if I fill in $2.499 or any other price that ends in 9/10ths of a cent.
This is probably in the realm of things that just don't really matter. But if they do, you can make the math work for you and maybe come out a nickel ahead each month
Plugged in a fuel price of 2.499/gallon
Calculated the simple price volume * price.
Created a column where the price was rounded to the nearest cent.
Created a column reflecting the rounded price minus the calculated price. Let's call this +/-
Summed the +/- column.
Over the 200 sampled values, there is a 0.005 advantage to the gas station.
If it really means that much to you, you can calculate the price * volume and see if the value where you stop is upto $0.005 in your favor or upto $0.005 in the favor of the station and act accordingly. Most times less.
Doesn't seem to matter if I fill in $2.499 or any other price that ends in 9/10ths of a cent.
This is probably in the realm of things that just don't really matter. But if they do, you can make the math work for you and maybe come out a nickel ahead each month
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javacountour, Australia dropped 1 and 2 cent pieces ages ago, so you can only pay in 5s...1,2,6 and 7c round down, 3, 4, 8 and 9c round up. Listening to the detractors, it was going to send every household broke.
Has seen some innovative purchasing practices, like the homelss guy who bought button mushrooms singularly, as he worked out (a long while ago actually) that a small button mushroom was 2c, and rounded to zero...and he had literally all day to shop....they stopped him doing it.
Means that if you are paying cash, you can pump that extra 1 or 2c over the dollar value...
Has seen some innovative purchasing practices, like the homelss guy who bought button mushrooms singularly, as he worked out (a long while ago actually) that a small button mushroom was 2c, and rounded to zero...and he had literally all day to shop....they stopped him doing it.
Means that if you are paying cash, you can pump that extra 1 or 2c over the dollar value...
The Army and Air Force Exchange did that overseas as well. When I was stationed in Germany, cash purchases were rounded to the nearest nickel. I think they just did the round down or round up. I.E 1,2,3,and 4 cents rounded down, 6,7,8,and 9 cents rounded up.
It wouldn't break my heart to see the penny go away here either.
Most people don't understand math.
Originally Posted By: Shannow
javacountour, Australia dropped 1 and 2 cent pieces ages ago, so you can only pay in 5s...1,2,6 and 7c round down, 3, 4, 8 and 9c round up. Listening to the detractors, it was going to send every household broke.
Has seen some innovative purchasing practices, like the homelss guy who bought button mushrooms singularly, as he worked out (a long while ago actually) that a small button mushroom was 2c, and rounded to zero...and he had literally all day to shop....they stopped him doing it.
Means that if you are paying cash, you can pump that extra 1 or 2c over the dollar value...
It wouldn't break my heart to see the penny go away here either.
Most people don't understand math.
Originally Posted By: Shannow
javacountour, Australia dropped 1 and 2 cent pieces ages ago, so you can only pay in 5s...1,2,6 and 7c round down, 3, 4, 8 and 9c round up. Listening to the detractors, it was going to send every household broke.
Has seen some innovative purchasing practices, like the homelss guy who bought button mushrooms singularly, as he worked out (a long while ago actually) that a small button mushroom was 2c, and rounded to zero...and he had literally all day to shop....they stopped him doing it.
Means that if you are paying cash, you can pump that extra 1 or 2c over the dollar value...
Originally Posted By: Shannow
. . . The bloke over the road (Chris Clearihan) in the "Solo" service station on the opposite corner used another technique when the going got tough...he would get Sophie, his attendant to wash his white Countach in a bikini...we didn't sell much petrol those afternoons, and really didn't mind too much not being busy. . . .
I've always thought the stations who run the brake tag (safety inspection) locations here should do something like that. Okay, maybe not the bikini, but why not a pleasant-mannered, pretty girl as the inspector? Male drivers would go away happy, and even women drivers would probably be less agitated dealing with a pleasant woman.
. . . The bloke over the road (Chris Clearihan) in the "Solo" service station on the opposite corner used another technique when the going got tough...he would get Sophie, his attendant to wash his white Countach in a bikini...we didn't sell much petrol those afternoons, and really didn't mind too much not being busy. . . .
I've always thought the stations who run the brake tag (safety inspection) locations here should do something like that. Okay, maybe not the bikini, but why not a pleasant-mannered, pretty girl as the inspector? Male drivers would go away happy, and even women drivers would probably be less agitated dealing with a pleasant woman.
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