PRICE TAG QUESTION

In almost every store you will see items priced at one cent less than an even number of dollars ... for example, $4.99 instead of $5.00
One reason for this is that if the first digit is lower, it will make the price seem less than it actually is.
There was a much better reason for doing this originally, however, when stores had old-fashioned cash registers. Do you know what the reason was?


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Old cash registers required the cashier to key in the amount of the purchase before the till could be opened. A paper record was made by the machine of every sale.
The reason prices were lowered to one cent under the dollar was to prevent the cashier from pocketing the money instead of ringing up a sale. A price of $5.00 paid with a $5.00 bill didn't require change.
But a price of $4.99 would likely still be paid with a $5.00 bill, and would require the cashier to key in the sale to make change.


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