Restaurant bill ending in .00
February 1st, 2010 at 3:51:15 PM
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I wonder about a comment in Wizard's Harrah's review. He noted: "When I went to pay, the cashier seemed very pleasantly surprised the check was an even dollar amount. I noted that it should happen once every 100 checks, on average."
Is that really true in an environment where things tend to be priced in .99 increments? Off the top of my head I would think the statement is less likely to be true unless various menu items were priced in random fractions of a dollar.
Someone set me straight.
Thanks!
Is that really true in an environment where things tend to be priced in .99 increments? Off the top of my head I would think the statement is less likely to be true unless various menu items were priced in random fractions of a dollar.
Someone set me straight.
Thanks!
February 1st, 2010 at 3:56:11 PM
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I'm with you on that one.
The flip side is if most prices end with .95 and the tax is slightly more than 5%, then there would be a HIGH percent that the total has no cents. Or some other similar numbers.
The flip side is if most prices end with .95 and the tax is slightly more than 5%, then there would be a HIGH percent that the total has no cents. Or some other similar numbers.
I invented a few casino games. Info:
http://www.DaveMillerGaming.com/ —————————————————————————————————————
Superstitions are silly, childish, irrational rituals, born out of fear of the unknown. But how much does it cost to knock on wood? 😁
February 1st, 2010 at 4:02:32 PM
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Or the fancy/expensive restaurants, where the prices are in dollars: "shrimp spaghettini --- 19"
A falling knife has no handle.
February 1st, 2010 at 4:13:43 PM
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Long answer: I worked at Toys R Us for almost 7 years, doing a lot of cashiering. Almost every time the total ended in .00, the customer would say "Wow. How often does that happen?" And every time, my response would be "About one in every hundred purchases" And each time the customer would think either A: I somehow knew the odds of this "crazy" occurance or B: It seems like it should be more rare than that.
And it is more rare, because if someone buys one item for 9.99 or 19.99, the total isn't going to end in .00. But once you get multiple items, I think it has to be 1 in 100.
At a grocery store, where people almost always buy more than 1 item, it's probably right around 1 in 100.
And it is more rare, because if someone buys one item for 9.99 or 19.99, the total isn't going to end in .00. But once you get multiple items, I think it has to be 1 in 100.
At a grocery store, where people almost always buy more than 1 item, it's probably right around 1 in 100.
February 1st, 2010 at 5:00:11 PM
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Quote: slyther
Is that really true in an environment where things tend to be priced in .99 increments? Off the top of my head I would think the statement is less likely to be true unless various menu items were priced in random fractions of a dollar.
That's a good point. My remark was said off the cuff, so don't judge me too harshly. It was the soft drink at $3.59, which enabled the total with the 8.1% tax to get to an even dollar amount. I also find that if the bill were $24.98, the bill would come to $27.00. That I think would be a fairly common total for that diner and a one-person check.
After giving this more thought, the average for that particular cafe is probably not exactly 1 in 100, could be more or less, depending on the mix of what people order. As was noted above, as the number of diners per check gets larger, the probability should approach 1%.
"For with much wisdom comes much sorrow." -- Ecclesiastes 1:18 (NIV)
February 1st, 2010 at 5:20:19 PM
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People buy a LOT more than 1 item. Plus there are many items where the price is not even close to .99 or .95, as well as a great deal of items that are individually priced per pound.Quote: FinsRuleAt a grocery store, where people almost always buy more than 1 item, it's probably right around 1 in 100.
I invented a few casino games. Info:
http://www.DaveMillerGaming.com/ —————————————————————————————————————
Superstitions are silly, childish, irrational rituals, born out of fear of the unknown. But how much does it cost to knock on wood? 😁
February 1st, 2010 at 10:40:56 PM
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It's tax that really screws things up. I used to work at a store where I'd price cheap commodity items (such as blank CDs and DVDs) to come out at even quarters. More than one, though, and all bets are off.
February 2nd, 2010 at 7:06:53 AM
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You can resort to the Mexican system: the tax is included in the listed price. That way all prices can be rounded off. This works for restaurants, as well as for any other kind of store. Except, for some reason, groceries. All my gorcery receipts, be they made of one item or more, are replete with odd cent amounts.
Of course you'd also have to accept the 16% VAT (value added tax) that comes along instead of a sales tax. I don't really recommend it.
Of course you'd also have to accept the 16% VAT (value added tax) that comes along instead of a sales tax. I don't really recommend it.
Donald Trump is a fucking criminal
February 2nd, 2010 at 7:41:07 AM
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Quote: NareedYou can resort to the Mexican system: the tax is included in the listed price....
Trivia: for some reason I no longer remember, I found out that this is illegal in Massachusetts. I've always kind of favored the idea myself.
the next time Dame Fortune toys with your heart, your soul and your wallet, raise your glass and praise her thus: “Thanks for nothing, you cold-hearted, evil, damnable, nefarious, low-life, malicious monster from Hell!” She is, after all, stone deaf. ... Arnold Snyder
February 2nd, 2010 at 7:50:06 AM
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Quote: odiousgambitQuote: NareedYou can resort to the Mexican system: the tax is included in the listed price....
Trivia: for some reason I no longer remember, I found out that this is illegal in Massachusetts. I've always kind of favored the idea myself.
That seems unlikely only because vending machines, soda machines, and other automatic purchases still have a sales tax, but you never see it. They'd have to put $.71 + $.04 Mass Sales tax on the Coke machines. There are other businesses that keep round numbers for ease of transactions, usually ones that involve teenage cashiers.
February 2nd, 2010 at 1:47:30 PM
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We used to have to add tax, too, but that changed in the 90s. the VAT's been in force since the 70s (it started at 10%, now it's 16%).
When you buy something, the receipt or invoice is supposed to have the VAT broken down for tax and accounting purposes. If you collect VAT, in theory, you're able to deduct some of the VAT you pay.
When you buy something, the receipt or invoice is supposed to have the VAT broken down for tax and accounting purposes. If you collect VAT, in theory, you're able to deduct some of the VAT you pay.
Donald Trump is a fucking criminal
February 2nd, 2010 at 1:53:02 PM
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Quote: cclub79That seems unlikely only because vending machines, soda machines, and other automatic purchases still have a sales tax, but you never see it.
Quote: the webpage below
* Collecting the 6.25 percent sales/use tax on taxable sales or rentals of tangible personal property or telecommunications services. Please note: The tax must be separately stated and separately charged on all invoices, bills, displays or contracts
they must be excluded from this definition. You made me look it up !
LINK
the next time Dame Fortune toys with your heart, your soul and your wallet, raise your glass and praise her thus: “Thanks for nothing, you cold-hearted, evil, damnable, nefarious, low-life, malicious monster from Hell!” She is, after all, stone deaf. ... Arnold Snyder
February 2nd, 2010 at 2:25:01 PM
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I keep thinking of other places that use round numbers. For example, Movie tickets usually are rounded. I do remember in NJ, they used to have the price broken down on the actual ticket. (Small print) $5.68 + .32 NJ Sales Tax = (Large Big numbers) $6.00. Of course that was when movie tickets were six bucks! The Salon place I go also uses rounded to the dollar prices. It would be interesting to explore. Sounds like a rule that Mass is not overly worried about.
February 3rd, 2010 at 8:10:30 AM
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Quote: odiousgambitQuote: NareedYou can resort to the Mexican system: the tax is included in the listed price....
Trivia: for some reason I no longer remember, I found out that this is illegal in Massachusetts. I've always kind of favored the idea myself.
Illegal in PA as well. In fact, years ago the state-owned liquor stores used to include the sales tax in the posted price. At the time it was a Soviet-Style "order at the counter" and the clerk picked it up for you. They had small displays and a price list-all with sales tax incuded.
Eventually the state said this was illegal and not to do it. You read it right--the state was telling itself it was breaking its own law in how it posted price.
Personally I think if you quote it with tax it should be broken down right there. For example:
Coffee: $.99 plus 6% sales tax total of $1.05.
Reasoning is if you don't one day the state will require it to be "included" and hide the total tax burden.
If I remember right the Clinton Administration was having a hissy fit when the cell phone companies were doing this for Al Gore's "wire the schools to the internet" tax.
All animals are equal, but some are more equal than others
February 3rd, 2010 at 8:29:36 AM
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Quote: AZDuffmanReasoning is if you don't one day the state will require it to be "included" and hide the total tax burden.
Fed Weights and Measures makes this sort of point:
you can't open a gas station and try to make your prices look lower by putting up a sign that prices the gas in quarts. So they establish standard weights and measures.
So I guess this may be the concern: some posting a price that includes tax and some not... in addition to your point.
the next time Dame Fortune toys with your heart, your soul and your wallet, raise your glass and praise her thus: “Thanks for nothing, you cold-hearted, evil, damnable, nefarious, low-life, malicious monster from Hell!” She is, after all, stone deaf. ... Arnold Snyder
February 3rd, 2010 at 8:30:17 AM
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But again, I currently live in PA and there are certainly many places that do not separate the tax from purchase price, and never indicate it. Must be they don't care to enforce it.
February 3rd, 2010 at 8:35:42 AM
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Quote: cclub79Quote: odiousgambitTrivia: for some reason I no longer remember, I found out that this is illegal in Massachusetts. I've always kind of favored the idea myself.
That seems unlikely only because vending machines, soda machines, and other automatic purchases still have a sales tax, but you never see it. They'd have to put $.71 + $.04 Mass Sales tax on the Coke machines. There are other businesses that keep round numbers for ease of transactions, usually ones that involve teenage cashiers.
Massachusetts does not tax food or beverage sales unless they are prepared, such as in a restaurant or bar. Vending machine sales are like grocery store sales; there is no tax on them. (Exception: Liquor is always taxed, even if you buy it from a liquor store.)
Another bizarre law they have makes it illegal for establishments to have a traditional "happy hour". That is, bars cannot offer the same drinks at a lower price than what they normally charge for them. To work within the law, places will have a "happy hour" with reduced prices, but proportionally-reduced portions. For example, a $1 beer during such a "happy hour" would be served in a small plastic "picnic-style" cup.
February 3rd, 2010 at 8:40:13 AM
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Thanks for the info. So the same food (snacks, soda) that would be taxed at the grocery store is not in the vending machine. Interesting.
I wonder if the Mass law demands proportionality; could they offer 25 cent drinks whose cups are slightly smaller than the regular ones?
I wonder if the Mass law demands proportionality; could they offer 25 cent drinks whose cups are slightly smaller than the regular ones?
February 3rd, 2010 at 9:00:39 AM
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Quote: cclub79Thanks for the info. So the same food (snacks, soda) that would be taxed at the grocery store is not in the vending machine. Interesting.
I think you might have misread my post. No food or beverage is taxed unless it is prepared (i.e. fast food, restaurants, bars, etc.) or unless it is liquor.
The only possible exception to that might be grocery stores that make their own hot foods which you can buy
February 3rd, 2010 at 9:14:56 AM
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Are you sure that sodas, candies, and snacks are not taxed in your jurisdiction? Last night, I purchased a 2 liter bottle of Pepsi from a grocery store, and it was taxed (in PA.) Usually the threashold for food is whether it would be considered a "necessity".
February 3rd, 2010 at 9:17:16 AM
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In the state where I live, no food or beverage is taxed unless it is consumed on the premises. So take-out prepared food is never taxed. Grocery items are not taxed. Also, sugary soft drinks are taxed regardless of take-out or dine in. There is a debate going on whether coffee should be taxed in the same way, because it's not "nutritious."
Can anybody guess what state I live in?
Can anybody guess what state I live in?
"Dice, verily, are armed with goads and driving-hooks, deceiving and tormenting, causing grievous woe." -Rig Veda 10.34.4
February 3rd, 2010 at 9:19:05 AM
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Quote: cclub79Are you sure that sodas, candies, and snacks are not taxed in your jurisdiction? Last night, I purchased a 2 liter bottle of Pepsi from a grocery store, and it was taxed (in PA.) Usually the threashold for food is whether it would be considered a "necessity".
I can't speak for PA, but MA doesn't tax grocery items (unless they implemented a grocery tax within the 4 months that have passed since I moved to NV).
Replying to teddys, I'm going to guess California? Also, if you go to McDonald's and order a meal "to go", are you sure there is no tax on that even though it's not consumed on the premises?
February 3rd, 2010 at 9:27:04 AM
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Quote: JBReplying to teddys, I'm going to guess California? Also, if you go to McDonald's and order a meal "to go", are you sure there is no tax on that even though it's not consumed on the premises?
Nope, not California. And yes on McDonald's. I make sure to always order my meal "to go" even if I plan to eat it there so I don't get taxed.
"Dice, verily, are armed with goads and driving-hooks, deceiving and tormenting, causing grievous woe." -Rig Veda 10.34.4
February 3rd, 2010 at 9:36:37 AM
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Quote: teddysQuote: JBReplying to teddys, I'm going to guess California? Also, if you go to McDonald's and order a meal "to go", are you sure there is no tax on that even though it's not consumed on the premises?
Nope, not California. And yes on McDonald's. I make sure to always order my meal "to go" even if I plan to eat it there so I don't get taxed.
That's an interesting loophole. In any event, I am going to now guess that you are in Ohio.
February 3rd, 2010 at 10:29:12 AM
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I guess Illinois.
Having lived in California most of my life, I'm quite sure they don't charge sales tax if a food or beverage is purchased "to go," regardless of where it is actually consumed. When I worked in fast food at Knott's Berry Farm, I'm pretty sure tax was always charged.
Having lived in California most of my life, I'm quite sure they don't charge sales tax if a food or beverage is purchased "to go," regardless of where it is actually consumed. When I worked in fast food at Knott's Berry Farm, I'm pretty sure tax was always charged.
"For with much wisdom comes much sorrow." -- Ecclesiastes 1:18 (NIV)
