jimrandomh comments on It's the Same Five Dollars! - Less Wrong

23 Post author: Z_M_Davis 08 March 2009 07:23AM

You are viewing a comment permalink. View the original post to see all comments and the full post content.

Comments (26)

You are viewing a single comment's thread.

Comment author: jimrandomh 08 March 2009 04:38:15PM 4 points [-]

When advertisements talk about percentage off, they're providing two prices. The higher price is meant to anchor your judgment of the item's value and your estimates of what other stores will charge, while the lower price is meant to seem cheap by comparison. However, the higher price is not required to be reasonable, and in fact, it usually isn't; stores often mark items up to ridiculous prices just so they can bring them back down again with sales.