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Undertoad · 04-13-2002, 09:58 PM

I don't think the rounding is worth anything. Those people who use it to argue for the penny are stilly.

Whenever I buy anything with cash, I never pay with any change. I only pay with bills. The change goes into my pocket. When I get home the change goes into a jar. When the jar is filled it goes to the bank.

Effectively, I'm rounding every purchase up to the nearest dollar, until I turn that change in. And when I do, it works out to something like $30 a year.

So the price is $30 a year to round up to the nearest DOLLAR, but all we want to do is round up to the nearest nickel. That would be a fraction of $30...

But even that doesn't matter. After a period of time, the rounding would be taken into consideration by the market. It's not like the profit margin for every item suddenly increases by a few cents. Most businesses will take any extra money gotten from such rounding and put it right back into the business - because that's what the competition is going to do.

And that's especially true for items that aren't priced very high. The profit on a macaroni & cheese, at $.33, is probably 1 cent. To really get good profit margins, you have to stereos and web development and stuff.

04-13-2002, 09:58 PM	#13
Undertoad Radical Centrist Join Date: Jan 2001 Location: Cottage of Prussia Posts: 31,423	I don't think the rounding is worth anything. Those people who use it to argue for the penny are stilly. Whenever I buy anything with cash, I never pay with any change. I only pay with bills. The change goes into my pocket. When I get home the change goes into a jar. When the jar is filled it goes to the bank. Effectively, I'm rounding every purchase up to the nearest dollar, until I turn that change in. And when I do, it works out to something like $30 a year. So the price is $30 a year to round up to the nearest DOLLAR, but all we want to do is round up to the nearest nickel. That would be a fraction of $30... But even that doesn't matter. After a period of time, the rounding would be taken into consideration by the market. It's not like the profit margin for every item suddenly increases by a few cents. Most businesses will take any extra money gotten from such rounding and put it right back into the business - because that's what the competition is going to do. And that's especially true for items that aren't priced very high. The profit on a macaroni & cheese, at $.33, is probably 1 cent. To really get good profit margins, you have to stereos and web development and stuff.