They did it again!

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Mike Hartigan wrote:

I would expect that, like most other things, competition on price alone would be ineffective. If they are in the same consignment shop, B might have the edge. If A is next door and B is across town, B's price is never seen.
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says...

All else being equal, the lower price gets the sale. Obviously, if one store offers a better deal in terms of location, ambience, etc, etc, etc, then the equation changes. The buying experience is part of what you're buying. The consumer may feel that he's getting a better 'product' at one store even though the widgets, themselves, are identical. But that's a whole 'nuther discussion.
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On Tue, 20 Feb 2007 21:24:54 -0600, Mike Hartigan

The place where a couple cents either way will make a difference is in a mass retailer like a grocery store and you can bet they will round some products up and others down, making roughly the same amount of money and offering enough price points to get you in the store. I do all the grocery shopping at our house and seeing the prices between stores is an eye opener. If you were willing to go to two or three stores, only catching the sales you can save money but if you shop at any single store it is a wash.
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Actually there is no reason whatsoever to change any of the marked prices of individual items. Where the rounding will take place is at the checkout, where the prices are added up, sales tax applied, and then that total is rounded up or down IF you are paying cash. If you are writing a check or using plastic, the total in odd cents goes in and then shows up on your statement.
Just because there are no longer any pennies in circulation doesn't restrict anyone from paying an amount not an even 5 cent multiple unless you are paying cash. Then its rounded.
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there are probably 50 years worth of pennies sitting in sock drawers and coffee cans all over the US.
Of course, people would probably avoid spending them unless they had to, since they would now be 'collectible'.
Screw rounding- I'll leave the stuff on the counter and walk out if they try that, unless it is in my favor.
aem sends...
aem sends...
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snipped-for-privacy@att.net wrote:

Get a grip... let's say hypothetically that you make $25 an hour. If it takes you more than 1.44 seconds to pick up a penny, it's not worth your time.
I'm obviously not allowing for taxes etc. but you get the idea. It's not going to get any better in the future, either.
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On Thu, 22 Feb 2007 00:11:19 +0000 (UTC), snipped-for-privacy@panix.com (Rich Greenberg) wrote:

Great point. We have been buying gas priced to the 1/10h of a cent for the best part of a century and there are not any "mil" coins.
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snipped-for-privacy@aol.com wrote in (Rich

Yes.After reading his very sensible post,I had to smack my forehead and ask myself "why didn't*I* think of that?". DUH....
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I suspect that the Feds will quickly tell banks to NOT cut checks for other that multiples of $.05.
I do have some D.R.I.P.s that carry the number of shares to 5 decimal points. BUT they always round to the $.01 when the dividend is calculated. That's the number that's reported to the I.R.S.

Un huh. But the transaction is rounded UP to the nearest $.01. Likewise when you buy ONE of something that's 3/$1.00 it's rounded UP.
When the government mandates that bank accounts be rounded, that calculation may well used "standard rules the 1,2 rounding down and 3,4 rounding up.
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On Thu, 22 Feb 2007 21:48:31 -0500, "John Gilmer"

The only time they ever have to do any rounding at all is if you are getting change in cash.
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You can say that all you want, but the banking system doesn't permit transfers of a fractions of a cent. The system now works down to one cent.
Were the feds to want to get rid of the $.01 coin, they would also require the banks to bar transfers measured smaller than $.05.
If you think some "wise guy" banker would refuse to go along, you don't understand the banking system.

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snipped-for-privacy@crosslink.net says...

Huh? I live in a country where the one and two cent coins were eliminated a long time ago. And last year, the five cent coins were eliminated. Those changes resulted in rounding for CASH payments.
However, if I pay by cheque or bank card, it is done at the exact amount.
For example, supermarket checkouts display an exact price, to the cent. Paying cash results in a rounded price. Paying by cheque or card results in the exact price.
I am perfectly free to do cheque or electronic transactions with the last digit lower than the smallest coin (ten cents.) The banks are perfectly free to, say, pay me interest with the last digit of less than ten cents, to my savings account.
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What can I say. In the US you just can't write a check for $10.005 and expect it to clear as written. Most likely it would be taken as $10.
(Believe it or not, the commercial code permits modification of the amount under certain circumstances.)

Well, good for you. Frankly, I think your bank regulators made a mistake.

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John, Wake up and smell the roses. Nobody except you has suggested that you can make a transaction for a fraction of a cent. What everybody else agrees on is that even with no pennies in circulation, you can still write a check or make a credit/debit card transaction for an integer number of cents which is not a multiple of 5 cents.
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You miss the point.
The government can set rules about what the smallest increment may be transferred. Right now it is $.01. The government would simply change that to $.05.

Well, "everybody else" is wrong. If you permit checks to be cut for $10.03 then folks will expect to cash them for $10.03. That alone will maintain the demand for the $.01 piece. And that's why any rational approach to getting rid of the $.01 piece would require that the banks stop accepting checks to the nearest $.01 and that the banks start keeping accounts to the nearest $.05.

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Certainly they *could*. That they *would* is nothing more than an unsupported assertion on your part.
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Well, sport, if they didn't the demand for the $.01 coin would continue and the withdrawal of the $.01 would not stick.
Like it or not, if the government wants folks to change their currency habits they have to eliminate both the demand and the supply for the "old ways."
That's how the UK did it over 20 years ago.
With TWO false starts with the $1 coin, I suspect the US will think a little harder.
If the government let's the banking system continue with the $.01 they will not get rid of the $.01 coin. Perhaps private persons may produce them (if a $.01 isn't formally "legal" then it can't be illegal to make $.01 sized tokens.)
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We're talking about checks and EFTs here. Who needs one-cent coins for that?
I repeat: unsupported assertion on your part, based on nothing more than assumptions.
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Sure, they could, but IMHO it is very unlikely they would do so.

We have the examples posted here that in other countries where the smallest coin had been removed that non-cash transactions are still done and processed in multiples of that coin's value.
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If "they" don't there will still be $.01 "tokens" in circulation for a LONG time.
It all depends upon whether the US government has learned anything from the failed attempts to get rid of the $1 bill.

So?
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