Hold on - wouldn't the rounding happen at the end of the sale so taxes would actually dictate which way the rounding occurs? How the item is priced really would not matter. So the best bet would be to purchase as many things as possible at one time to make sure that rounding only happens once - and if you do it right, you will round down.
Quote: Hold on - wouldn't the rounding happen at the end of the sale so taxes would actually dictate which way the rounding occurs? How the item is priced really would not matter.
It does happen at the end but the pricing does and does not matter.
If you keep the same price its anyones guess where it rounds too from how much the person buys. But say you make 99 cent items 1.04. Even if you rounded the 4 down it would still assure you got the dollar you would have before.
In other words any price increase of 4 cents or more would guarantee that no matter what way the final price rounded you would be getting at least the same amount of money as before rounding started.
Personally I feel the cent has outlived its usefulness as far as purchasing power. 1 cent today doesn't buy what it did back in the Little House on the Prairie days.
basebal21 I understand what you were heading towards now, thank you for clarifying it. In that scenario, my feeling is this would amount price increases and that is what the consumer would see. IMHO the consumer would continue to choose to purchase at the lowest priced store - it would remain to be seen how the stores would handle that.
Quote: What I meant was those 99 cent items would probably just be knocked up to 1.04 so no matter what way it rounds theyre still getting at least what they got before.
Not in Canada, .99c items are alive and well, although some have turned into .98c items. You pay $1.00 at the till before tax (5% GST + ?% PST, in Alberta I only pay the 5% GST).
The fall of the penny failed to cause any noticeable price increases.
And if you are all into hunting pennies, much of the Canadian public mistakenly believed that the penny would be demonetized very soon after its withdrawal (it is not, it will be legal tender forever), and dumped their whole jars in a very short time!! Imagine change jars that have gathered dust since the 80s, 70s, 60s suddenly being deposited at every bank, along with denominations greater than 1 cent. You'll all have some fun :)
I think this might be the final act for the US penny. With the government shutdown already in place and ways to cut costs loom, I think our little lincoln friend has seen the end of his life.
With the pennies I have now (not in folders or albums), I think I'll still keep them for my collection and put them into empty penny rolls I have lying around and store them according to metal content (copper or zinc).
And if the penny doesn't get axed, then I'll still have however many dollars all my hoarded pennies accumulate to. Win-win, I guess.
Quote: Not in Canada, .99c items are alive and well, although some have turned into .98c items. You pay $1.00 at the till before tax (5% GST + ?% PST, in Alberta I only pay the 5% GST).
Yea I dont think wed see it everywhere, but I do think wed see that in areas with high costs of living were prices are already higher.
["The penny won't be demonetized, just withdrawn."]
Won't make a difference. If it is withdrawn, you can still spent them, but banks would want to hoard them up for the govt. and we will see less pennies around. If it is demonetized, like many countries' currencies before they switched to the Euro, then banks would still take them, but at a much faster pace.
The solution is to deflate the currency, the endless march into inflation needs to stop. Currency is supposed to have a fixed value not constantly become worth less and less. I say they should bring back the Half Cent and move to deflate the USD back to 1820 values.
Yes, and move into... *dramatic deep voice* EXCHANGE RATE HELL! *thunder crash*
I can't imagine how it would have a "fixed value", when everything on the planet swings up and down (and gold is useless).
America is slowly falling behind on all this, as initiatives to dump these wastes of money are met by "oh, but it's not a top priority!" and "my pockets will tear open if I have to carry heavy dollar coins (imagine how much lighter your pockets would be without cents)!". Canada has already killed the cent, we changed the nickel from copper-nickel to a cheaper MPPS composition in 2000, and we have circulating 1 (since 1987) and 2 (since 1996) dollar coins - it's a part of daily life, because the government had the initiative to change things. The only downside is the odd case where pedestrians break through manhole covers and fall into the sewers because of all the additional weight imposed by these high-denomination coins.
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Posted 10/03/2013 4:19 pm
