Fuel pricing

  Chronos the 2nd 12:06 15 Apr 2013

Something I read yesterday got me thinking. Can anyone explain why fuel is priced at say £139.9 a litre when 0.9 is not legal tender? And why the minimum purchase is usually 2 litres so if you wanted only a litre you could not actually buy it?

  Quickbeam 12:13 15 Apr 2013

The pumps can't accurately dispense small amounts and we're apparently all easily fooled into believing that 99p is considerably less than £1

  Chronos the 2nd 12:33 15 Apr 2013

Sorry as there is no edit function I must make another post to correct my original thread. There should be no £ in front of 139.9 so Quickbeam that should read as .9 of a penny or rather .9 of 1 pence. And .9 of 1 pence is not legal tender. I do understand your point about 99 in a price.

  Quickbeam 13:05 15 Apr 2013

Maybe it's not it's not a legal tender amount in it's own right, but it can be used for calculating the final price.

Looking at a fuel receipt from this morning, I filled up for £70. For that I got 50.76lts at £1.379

Would I have used another garage if they charged a round 138p? I don't think so...

  Chronos the 2nd 13:28 15 Apr 2013

But that means you have to buy multiples of 10 to round it up to a legal tender.

  spuds 13:31 15 Apr 2013

I would imagine that its all to do with marketing and 'rounding off' to the next figure, and how people think that they are getting a bargain?.

  fourm member 14:57 15 Apr 2013

We let ourselves be fooled and there's no easy way out of that. As you know, the 138 is always a lot bigger than the 99.

As you drive up you see the 138 sooner that the 99. And you respond to that.

If a retailer decided to bite the bullet and price at 139 he'd find everyone was stopping at the 138.99 down the road.

It's just a fact of life.

  Kevscar1 15:09 15 Apr 2013

Many years ago when old money was still around a survey was done that foud out you got many more sales if the price was say £5.99 rather than £6.00. It was also to stop staff stealing. Complete £ no need to ring it up just pocket it. 99p and you had to ring it on the till to give change. of corse then it was £5 19 shillings and 11 pence

  oresome 15:34 15 Apr 2013

I remember when furniture shops always priced items in guinneas. Few if any customers actually had such coins.

From memory a guinnea was 21 shillings so goods were actually 5% dearer than they appeared at first glance.

  Chronos the 2nd 16:41 15 Apr 2013

Sorry but you all seem to be missing the point here as .9 of one pence is not legal tender. I am not talking about 99p which is of course legal tender as the nine can easily made up using 2p's or 1p's and a 5p and a mixture of all three but .9 of one pence cannot be.

  csqwared 17:19 15 Apr 2013

I'm with you on this one Chronos the 2nd and I think Quickbeam proves your point nicely. 50.76lts @ 137.9p = £69.99.8 which cannot be achieved using legal tender so it's rounded up. Now there's a surprise!

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