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I was talking to a friend about this and we started talking on the lack of small change in most european countries. They can avoid small change because everyth
by phamilton 16y ago
I was talking to a friend about this and we started talking on the lack of small change in most european countries. They can avoid small change because everything is priced at a rounding point. A hamburger costs 2 euros, not 1.99 + tax. Tax is already included in the price. But we came across the reason why it wouldn't work here. A company can't have a set price across the board because each country has a different sales tax rate. The only way for this to work would be for the companies to bear the whole burden of the tax and charge the same for a Big-Mac in LA (9.75% sales tax) and Salt Lake City (6% sales tax). I don't see this happening in the near future.
- sliverstorm 16y ago> The only way for this to work would be for the companies to bear the whole burden of the tax and charge the same for a Big-Mac in LA (9.75% sales tax) and Salt Lake City (6% sales tax). That or they just charge the Salt Lake City residents as IF they had 9.75% sales tax. Or they do some fancy booking, and charge the LA people a little less than 9.75% and the Salt Lake City people a little more than 6%
- eru 16y agoDon't LA and Salt Lake City already have very different labour and land costs? The few percent difference in sales tax shouldn't matter too much.
- bmelton 16y agoWould they? I occasionally commute to Tyson's Corner, VA, an affluent neighborhood. It's easy to see that it's more affluent by the name brands on the retail stores, but the first time I really noticed it was when I was in Wendy's, and their dollar menu (typically, $0.99,) was priced at $1.15. I thought that Wendy's had just raised their prices until I drove out of the area and noticed that the dollar menu was still in effect elsewhere.
- deleted 16y ago[deleted]
- Devilboy 16y agoThey already round the tax to the nearest 1c, why can't they just round to the nearest 5c?
- deleted 16y ago[deleted]
- stoney 16y agoIn Australia things are routinely priced at e.g. $4.99 (including tax), but the smallest coin here is 5 cents. They just round the total to the nearest 5c, it's really not a problem.
- barkmadley 16y agoI personally see $4.95 more often than $4.99 in Australia.
- VMG 16y agoIn the city where I live (south germany), Burger King has had 99 cent burgers for a long time (now it's 1.29 euros or something). People here fiddle around with cent coins all the time.