Quote:
Originally Posted by genuinegirly
The current method exists here because it works here. If a large enough contingent of the retail industry decided to include taxes in their listed prices, it might take off. Or they might loose market share. Why risk losing market share when the current system works?
|
I'm not sure if it necessarily works here or if it's just a matter of what we are used to. There is a reason only 3 ( is it 4? I can't remember) countries on the planet don't use the metric system, the USA being one. It's what we are used to.
The current system ( in the USA) works because of perceived value. $4.95 always will seem more attractive than $5.25.
You equate $4.95 in your mind with 5 bucks but $5.25 as almost 6 bucks. So the $4.95 appears to be cheaper.
It would require a nationwide mandate to include the tax in the purchase price before shoppers would see the prices differently.
Just like the Buy One Get One Free that our (Florida) stores advertise. Are you really getting one free? What is the cost of one, divided by two. Can you buy two of those cheaper at another store than you can buy "one" during that sale?
Retailers exploit our inabilty to think and assume the nice pretty signs are our best deal.
But yes, I agree that other models of selling goods with sales tax included are a good thing and no, the tip for service should never be included in the final bill.