One thing I learned very early in my retail career is that most customers can’t do math.  I remember one time we were writing an ad with Top Ramen on the front page, and we had put in the price as 8 for $1.00.    The District Manager saw it and told us to make it 12 cents, because it looks cheaper and “We’re not here to teach our customers math.”  He was right.  Nowadays, however, you see more and more of multiple pricing…my chain will run Hershey’s Kisses on sale during a season for 5 for $10, then 4 for $8, and then really confuse things by going 3 for $5.55 or something like that.  I suppose there’s been studies that show that people will buy more at 5 for $10 then 4 for $8, but then why do both?

To prove my point, we will run Christmas items first at 50% off, then 75% and 90% off after Christmas.   We hang the 75% signs all over the sections and some does sell, but if you make a specific price sign for an item  (i.e. M & M’s–99 cents!  the product moves 3x faster because a lot of people can’t do the math of 75% off $3.99.

This is from another site but it could happen anywhere…

(I work in a large import store that sold things like furniture and dishes. Most of these things are handmade, and so each is a little different. A customer has been in the store for a while, buying a variety of things but demanding discounts on everything for every ‘flaw.’ He is finally done, has paid and is leaving but spotted one last thing, a $90 wicker chair. I have to go ask my manager, yet again, if I can give him a discount.)

Me: *to my manager* “He doesn’t like the weave and wants a discount.”

Manager: “Fine! If it will get him out of here, you can give him ten bucks off.”

(I return and tell him I can give him ten dollars off the price.)

Customer: “Ten dollars? NO, I want ten PERCENT!”

Me: “Okay, sir, whatever you say.”

(I ring up the $90 chair, with his 10% discount, nine dollars off. He left happy, smug in his victory.)