Decimal Places?

Gareth56

Why do most energy companies quote their [unit] prices up to 3 decimal places e.g. 3.209p

notbritishgas

Gareth56 wrote: »

Why do most energy companies quote their [unit] prices up to 3 decimal places e.g. 3.209p

Would you rather them say 4p?

notbritishgas

On a more serious note, I have just worked out (accurately I think) that If an energy company had 6million customers who each used about the national average of 20000 kwh a year, the .009 at the end of your price in the OP would bring them in £10,800,000 a year!

BusinessEnergyBroker

How many petrol stations quote £1.10 per litre rather than £1.109p?

Its the same with retail stores charging £3.99 etc. People see the £3 first and psychologically think its cheaper than it is.

Gareth56

notbritishgas wrote: »

Would you rather them say 4p?

No. Basic maths should tell you that you to round down, ergo 3.209p becomes 3p (zero dp)

I see no point in quoting to a thousandth of a pence other than as has been said to screw even more money from customers.

I don't suppose the energy companies friend aka OFGEM have a view on this???

KimYeovil

It's the percentage of the actual price per chargeable unit (kWh) that is important! Are you people seriously suggesting that companies should be limited to raising their prices (or lowering their prices) by 33% or 25%? Hang on, they already do that. What I mean, is that they can not differentiate from other companies by 25% or 50% at a time? If you only want to be charged 2p or 3p that's a 50% difference! 3p or 4p - 33% difference. 4p or 5p - 25% difference.

I know it's enjoyable to be paranoid and blame nasty companies but do try some primary school arithmetic before crying foul.

BexTech

What a silly thread!

moonrakerz

BusinessEnergyBroker wrote: »

Its the same with retail stores charging £3.99 etc. People see the £3 first and psychologically think its cheaper than it is.

The main reason so many prices end in 99p is to make sure that the transaction goes through the till.

Gareth56

KimYeovil wrote: »

I know it's enjoyable to be paranoid and blame nasty companies but do try some primary school arithmetic before crying foul.

So the [greedy] energy companies charge down to the level of a thousandth of a pence because they want to do us a favour!! :eek:

Presumably then we can see energy unit prices quoted to 4 decimal places before long then.

Good smoke screen for hefty price rises though isn't it;)

Gareth56

moonrakerz wrote: »

The main reason so many prices end in 99p is to make sure that the transaction goes through the till.

How does that work then?

BexTech

Gareth56 wrote: »

How does that work then?

If an item was £1 they could simply pocket the pound and wouldn't need to open the till for the 1p change. Similar with other prices. Very old method of ensuring staff don't steal from the till.