Q:
A: I don't have an official answer for you, but a reasonable theory. The whole psychology behind pricing something with a .99 at the end is that it's practically another dollar, but you don't add it that way. 12.99 looks less expensive to us than 13.00, but to think about it, it's only a penny difference. Well, if everybody does that, and Wal-Mart is supposed to be less expensive than anyone else, how do they really show it but still make good money? By dropping another penny. Since it is not the normal .99 we see, it gets out attention, and we know that's it's "cheaper", but again, by only a penny.