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Sticker price is the listed price of an item, often the MSRP, and may be negotiable. It is commonly used in the context of automobiles, where researching the invoice price can help consumers get a better deal. The science of sticker pricing is complex, with industry tricks like ending prices in “9” or “5” to make consumers feel like they are paying less.
The price of a sticker is the price listed for an item. Usually, it is the manufacturer’s suggested retail price (MSRP) and may be negotiable. The term “sticker price” comes from the idea that the price of an item is often marked with the use of a removable sticker, allowing people to hide the true cost of the item if it is being used for a gift. Being aware of how sticker pricing works can be a great way to get a good deal.
Many people use the term specifically in the context of automobiles. When an automaker builds a car, it determines an MSRP based on how much the car costs to build and how much the manufacturer thinks people are willing to pay for it. In many areas, the MSRP must be clearly displayed, by law. Car buyers would, as a general rule, be foolish to pay this price, however, as the MSRP could be radically different from the invoice price the dealership paid for the car.
When people explore buying a new car, many organizations strongly recommend researching the typical invoice price, along with the sticker price. Being aware of the invoice price can help a consumer because he or she can drive a tougher deal for the car in question. It can also be a good indicator of the dealer’s honesty, as the consumer knows exactly how much the dealer can go down. In other cases, especially for coveted or very popular cars, the sticker price may be fixed; most dealers know their markets well enough to be aware of how much they can realistically get for the vehicle.
The term is also used more generically simple to refer to various consumer goods. Many stores have sales that offer X% off the “sticker price,” indicating the entire store is discounted. In the case of a retail store, the sticker price may reflect the MSRP or may be additionally marked up. This choice is made by owners and managers, who balance the cost of the item with the consumer’s desire.
The science of sticker pricing is quite complex. Large companies may have an entire pricing division to sell. The balance between too much and too little on a sticker’s price can sometimes be difficult to strike, especially with higher-end items. The sticker price also usually includes industry tricks like ending a “9” or a “5” to make the consumer feel like they are paying less. For example, $29.99 seems like a lot less than $30.00, even though the difference is really pretty minimal.
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