After spending quite a few hours looking into this subject I have documentation to back up my report. A wholesale distributor gave me access to their purchase database. The prices they paid to suppliers show that there is an even spread of all possible amounts (ending in 1 to 99 cents).
The pricing structure at the retail level using about a thousand advertised prices when using a MS excel report, shows peaks at $xxx. 49 and $xxx. 99
Using US reports on retail purchased nation-wide is in the billion dollar range.
Business101:
A selling price is determined by:
1) Cost of material
2) Cost of Labor
3) Overhead (advertising, maintenance and other factors)
Added to these costs is a profit amount. The total selling price has np peaks at the 49 of 99 level
Retail sales people, when questioned about this pricing profess no knowledge regarding the reason to this pricing. When attempting to get information from retailers was fruitless and met with outright hostility.
Conclusion:
The 99 pricing is set by ROUNDING UP, NEVER ROUNDING DOWN.
It also discourages competition as far as the retail buyer is concerned.
A laudable excemption to this rip-off scheme are all the Walmart stores. With the esception of the food department, all dry-good aisles display in large numeral prices such as $10.00m $25.00 for example.
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