4 ms·
Well the 4.95 is because the buyer thinks of it as 4 plus something while the seller thinks of it as 5 minus a little.
by ema 3y ago
Well the 4.95 is because the buyer thinks of it as 4 plus something while the seller thinks of it as 5 minus a little.
- markdown 3y agoYes this is perfect. To me, it's $5. A round figure. $4.13 is just silliness.
- onion2k 3y agoI understand that, but the Foobar8568 is saying "The price is 4 + tax in the US, so it'd be 4.95 in Europe." Why wouldn't it be 4 in Europe if the European price has tax already included? Why would the European vendor add on an extra .95? I assume Foobar8568 is saying the cost per unit is 4, and the price with or without tax is derived from there, but there's no reason to believe that's the case. The cost of something and the price shops charge for it are largely unrelated. The cost might be 1, and the shops might just add on 3 for profit. In the US the sales-without-tax pricing means they can get away with adding on 3 plus an extra .13 for tax. In Europe it might be the case that they can't, and the profit for the shop is a little less because VAT comes out of their cut instead of something extra the buyer pays. We don't know. We can't know. The point here is that there shouldn't be an automatic assumption that the US way is better, and that including the tax in the price would lead to higher prices. I believe that's what Foobar8568 was implying.