Serious question about losing the penny

[sam_gordon]

More math...

Assuming 15k miles per year...

Average 30mpg & 10 cent off per gallon... save $50/year
Average 20mpg & 10 cent off per gallon... save $75/year.

I mean, sure, every little bit helps, but far from a windfall.

 

[Threehearts]

I have a business as well as work in a business in Washington DC. So many shops are getting rid of pricing that involves pennies. I don't know anyone who thinks that pennies are convenient or practical. Certainly no reasonable person thinks they are getting a bargain if an item costs $9.99 rather than $10.00.

Most of my colleagues stopped pricing with pennies years ago. Supermarkets still seem to use the __.99 cent pricing often and I guess that when some shoppers see that, they think they are getting a meaningful discount.

 

[tvguy]

If my math is right, I will use my CC until gas is close to $2.00/gallon since the CC returns 5% on all gas charges.

We just had a price drop to $2.77/gallon. If I pump 12 gallons and paid cash I save $1.20 but using my CC with the 5% it comes to $1.662 and since they round up I save $1.67.

A 5% card rebate is rare. But of course, in reality, you are just getting your money back since they factor that into the price so that even those who are paying cash are subsidizing you.

 

[tvguy]

More math...

Assuming 15k miles per year...

Average 30mpg & 10 cent off per gallon... save $50/year
Average 20mpg & 10 cent off per gallon... save $75/year.

I mean, sure, every little bit helps, but far from a windfall.

Lots of little bits turn into bigger bits.

 

[Mackenzie Click-Mickelson]

I have a business as well as work in a business in Washington DC. So many shops are getting rid of pricing that involves pennies. I don't know anyone who thinks that pennies are convenient or practical. Certainly no reasonable person thinks they are getting a bargain if an item costs $9.99 rather than $10.00.

Most of my colleagues stopped pricing with pennies years ago. Supermarkets still seem to use the __.99 cent pricing often and I guess that when some shoppers see that, they think they are getting a meaningful discount.

It didn't work well for JCP to go to flat pricing.

That said for many places sales tax adds on stuff so a flat dollar amount doesn't absolve odd cents it just depends on where you live (and if the area is in a special taxing district too).

 

[sam_gordon]

I have a business as well as work in a business in Washington DC. So many shops are getting rid of pricing that involves pennies. I don't know anyone who thinks that pennies are convenient or practical. Certainly no reasonable person thinks they are getting a bargain if an item costs $9.99 rather than $10.00.

Most of my colleagues stopped pricing with pennies years ago. Supermarkets still seem to use the __.99 cent pricing often and I guess that when some shoppers see that, they think they are getting a meaningful discount.

It's a psychological thing. Look at how big ticket items (cars, appliances, etc) are priced... $29,999! $1599!

Many will focus on the first couple of digits and unconsciously think "29 is less than 30" or "15 is less than 16!" (Using the above examples). The same with items marked at $_.99".

It's a common marketing "trick".

 

[Threehearts]

I agree sam_gordon but surely intelligent people can see that .99 is just a marketing ploy. That said, there must be shoppers who fall for the nonsense or the stores, car dealerships etc wouldn't do it.

 

[sam_gordon]

I agree sam_gordon but surely intelligent people can see that .99 is just a marketing ploy. That said, there must be shoppers who fall for the nonsense or the stores, car dealerships etc wouldn't do it.

But intelligence doesn't matter... it's a subconscious thing.

Another marketing ploy is the big sign saying "50% off everything!". Of course, "up to" precedes the 50%, but people don't notice it. The brain "ignores" the "inconsequential"

 

[PrincessShmoo]

I haven't seen any local store refusing to take pennies when paying in cash, they just stopped giving them out as change and do the rounding up/down described earlier.

So, the store takes in the pennies, but won't use them, even if they have enough to make the proper change? Who's winning there?

 

[soccerdad72]

This is what I was wondering also. For many years, I've had a piggy bank that I put my pennies in at the end of the day. So I've got quite a few pennies, like thousands. I'm assuming/hoping that I can still use them for payment. Would you suggest that I try to get rid of them as soon as possible? Or will banks, at least, accept them for the foreseeable future?

I mentioned this on the other penny thread, but our local grocery store was offering gift cards for pennies at a 2 to 1 exchange. Turn in $10 of pennies, get a $20 store GC.

 

[soccerdad72]

A 5% card rebate is rare. But of course, in reality, you are just getting your money back since they factor that into the price so that even those who are paying cash are subsidizing you.

Costco card gives 5% back on fuel at their stores and 4% on gas anywhere else

 

[disneychrista]

So, the store takes in the pennies, but won't use them, even if they have enough to make the proper change? Who's winning there?

I am wondering the same thing.

 

[kdonnel]

I am wondering the same thing.

The merchant.

It's cheaper for them to take in the pennies and send them to the bank to be destroyed than it is for them to code cash register software that presents two different change amounts for the cashier to decide how to make change based on what is in the drawer.

There is already so many opportunities for cashiers to either make mistakes or commit fraud. Merchants in no way want to present two different change amounts to cashiers.

 

[Atlas722]

Kroger is now rounding off to five cents.

 

[tvguy]

Cash is a rarity for me…

Only slightly off topic, until like 5 minutes ago I did not realize it was illegal for dispensaries to take credit cards. So at least for the near future, you have to use cash there. No idea about rounding prices due to a penny shortage though, LOL.

 

[disneychrista]

Only slightly off topic, until like 5 minutes ago I did not realize it was illegal for dispensaries to take credit cards. So at least for the near future, you have to use cash there. No idea about rounding prices due to a penny shortage though, LOL.

I’ve only purchase from a dispensary onetime and since I rarely have cash I am sure I used a credit card. Since there ones who allow you to purchase online and have delivered I am sure they accept credit cards.Or maybe they take debit cards? Where did you see they can’t?

 

[tvguy]

I’ve only purchase from a dispensary onetime and since I rarely have cash I am sure I used a credit card. Since there ones who allow you to purchase online and have delivered I am sure they accept credit cards. Where did you see they can’t?

It was on the dispensary website I was looking at, and a Google search revealed it is against federal law to buy marijuana in person or online with a credit card. So if done, it is being done illegally.

https://www.nerdwallet.com/credit-cards/learn/buy-marijuana-credit-card
https://deltaboyz.com/

 

[disneychrista]

It was on the dispensary website I was looking at, and a Google search revealed it is against federal law to buy marijuana in person or online with a credit card. So if done, it is being done illegally.

https://www.nerdwallet.com/credit-cards/learn/buy-marijuana-credit-card
https://deltaboyz.com/

I guess it makes sense. Banking is something regulated on a Federal level and MJ is still not legal on the federal level. It is honestly not something I ever thought about since dispensaries are not something that I frequent.

 

[tvguy]

I guess it makes sense. Banking is something regulated on a Federal level and MJ is still not legal on the federal level. It is honestly not something I ever thought about since dispensaries are not something that I frequent.

Not in my life experience either. But as a fan of cruising it has been a HUGE issue in recent years as Americans from states where laws have been relaxed have a hard time realizing that not only is U.S. Federal law stricter, there are also places in the world where possession can bring the death penalty! (China, Iran, Vietnam, Saudi Arabia and Singapore). The rules of your home state carry no weight on a cruise ship in a foreign port.

 

[PollyannaMom]

This is what I was wondering also. For many years, I've had a piggy bank that I put my pennies in at the end of the day. So I've got quite a few pennies, like thousands. I'm assuming/hoping that I can still use them for payment. Would you suggest that I try to get rid of them as soon as possible? Or will banks, at least, accept them for the foreseeable future?

I am wondering a similar thing. If I should cash in my change now so I don't get "shafted" on the penny's. I assume eventually they will take them out of circulation completely and there value will be zero.

I've wondered the exact opposite. - Should I save my pennies because they're going to be collectors' items worth more? (I don't have nearly as many, though.)