I agree with those talking up the need to kill off the five cent coin from our currency. Doing so would benefit newsagents and other retailers. We have the rounding principles in place already so process-wise it would be an easy move to implement.
I agree with those talking up the need to kill off the five cent coin from our currency. Doing so would benefit newsagents and other retailers. We have the rounding principles in place already so process-wise it would be an easy move to implement.
For what it is worth, the whole notion of psychological pricing (.99c or .95c endings) was conceived to force cashiers to give change – otherwise that $20 might be slipped into a pocket without going through the till.
Not sure if rounding to 10c would make a difference to the number of ‘full amounts’ tendered, but a thought nevertheless.
Dennis, more info here on 99c
http://skeptics.stackexchange.com/questions/2359/the-origin-of-99-cents
So on one hand you are annoyed about a 5c increase in eftpos fees. On the other you think consumers won’t care about a 5c increase in what they pay due to rounding.
I’m aware that 99/95c rounding evens out on multiple item purchases.
Also consider given the above that if you had a $4.95 magazine and someone paid via eftpos (to avoid loosing 5c on the transaction themselves and paying you $5) the extra eftpos fees would cost you more.
So on low dollar/margin products you might be better scrapping the 99/95c price point and going straight to the $ mark.
Blake this is completely unrelated to the EFTPOS fee issue in that everyone would be treated equally. Prices would adjust based on rules. In some sales a shopper would love while in others they would win.
In your example, at Coles the $4.95 would not cost Coles more whereas it would cost a newsagency more.
My Flying Doctor donation box would miss out. So many people don’t want their 5cent change and it goes into the donation box. It is amazing how much is collected. All those 5cents do add up to dollars.
I notice a number of shops in the last few months are attempting to pocket your 5 cents….example you buy something for $4.95, you hand over $5 and then the person offers no change unless you ask for it. Then it is like you are the criminal and the one making the fuss because the person at the counter is stealing from you. Some might say overrating but it feels like theift to me.
Peter