Can they do that? Only round down??? Seems like that would be kinda stupid and unfair
They're only cheating themselves, so I don't know why anyone would complain.
If you assume every transaction has equal likelihood to end in any digit from 0 to 9, then there's a 10% chance of it ending in any one digit...
With proper rounding:
The final price ends in a 0 or 5 (20%) -- no rounding
The final price ends in a 1 or 6 (20%) -- round down 1 cent
The final price ends in a 2 or 7 (20%) -- round down 2 cents
The final price ends in a 3 or 8 (20%) -- round up 2 cents
The final price ends in a 4 or 9 (20%) -- round up 1 cent
Over a hundred transactions (assuming equal distribution), you'd have (20 x 0) + (20 x -1) + (20 x -2) + (20 x 2) + (20 x 1) = 0 - 20 - 40 + 40 + 20 = 0.
With always rounding down:
The final price ends in a 0 or 5 (20%) -- no rounding
The final price ends in a 1 or 6 (20%) -- round down 1 cent
The final price ends in a 2 or 7 (20%) -- round down 2 cents
The final price ends in a 3 or 8 (20%) -- round down 3 cents
The final price ends in a 4 or 9 (20%) -- round down 4 cents
Over a hundred transactions (assuming equal distribution), you'd have (20 x 0) + (20 x -1) + (20 x -2) + (20 x -3) + (20 x -4) = 0 - 20 - 40 - 60 - 80 = -200.
So, over 100 transactions, they'd be down $2, or 2 cents per transaction.
I have no idea what an average cash transaction at Superstore is, but it's likely well over $10, so losing an average of 2 cents per cash transaction probably isn't keeping Galen Weston up at night.
Also, if something that small is enough to make someone choose to pay cash instead of with a card, it actually pays off better for Loblaws because they don't have to pay the card processing fee. There probably are people out there who would look at the total and think "the final price ends in 63 cents, so, if I pay cash, they'll charge me 65 cents; but if I put it on my card, it will only be 63 cents".
__________________
Turn up the good, turn down the suck!
They're only cheating themselves, so I don't know why anyone would complain.
If you assume every transaction has equal likelihood to end in any digit from 0 to 9, then there's a 10% chance of it ending in any one digit...
With proper rounding:
The final price ends in a 0 or 5 (20%) -- no rounding
The final price ends in a 1 or 6 (20%) -- round down 1 cent
The final price ends in a 2 or 7 (20%) -- round down 2 cents
The final price ends in a 3 or 8 (20%) -- round up 2 cents
The final price ends in a 4 or 9 (20%) -- round up 1 cent
Over a hundred transactions (assuming equal distribution), you'd have (20 x 0) + (20 x -1) + (20 x -2) + (20 x 2) + (20 x 1) = 0 - 20 - 40 + 40 + 20 = 0.
With always rounding down:
The final price ends in a 0 or 5 (20%) -- no rounding
The final price ends in a 1 or 6 (20%) -- round down 1 cent
The final price ends in a 2 or 7 (20%) -- round down 2 cents
The final price ends in a 3 or 8 (20%) -- round down 3 cents
The final price ends in a 4 or 9 (20%) -- round down 4 cents
Over a hundred transactions (assuming equal distribution), you'd have (20 x 0) + (20 x -1) + (20 x -2) + (20 x -3) + (20 x -4) = 0 - 20 - 40 - 60 - 80 = -200.
So, over 100 transactions, they'd be down $2, or 2 cents per transaction.
I have no idea what an average cash transaction at Superstore is, but it's likely well over $10, so losing an average of 2 cents per cash transaction probably isn't keeping Galen Weston up at night.
Also, if something that small is enough to make someone choose to pay cash instead of with a card, it actually pays off better for Loblaws because they don't have to pay the card processing fee. There probably are people out there who would look at the total and think "the final price ends in 63 cents, so, if I pay cash, they'll charge me 65 cents; but if I put it on my card, it will only be 63 cents".
I thought he meant rounding down the change you receive
won't we see tills and registers programmed with this in mind now, so that they'll automatically do the rounding and eventually you'll never see a total not ending in 0 or 5?
won't we see tills and registers programmed with this in mind now, so that they'll automatically do the rounding and eventually you'll never see a total not ending in 0 or 5?
Only cash transactions are rounded, if paying by debit or credit card it doesn't round.
Like my bill today came to 54.44 and underneath it said 54.45 for cash only.
It is pretty hilarious to hear some of the moaners on this one and how rounding will somehow destroy their lives. In fact, some retailers like Superstore and Home Depot are doing a little PR by declaring that they'll only round down.
Some of the comments that I have heard even go as far as to suggest that retailers will fix their prices to force rounding up, even though such an effort would be useless on everything except single-item purchases. Retailers will always be most concerned with the sticker price above all else, not the post-tax, post-rounding total of a single item.
The Following User Says Thank You to Jimmy Stang For This Useful Post:
^ In your previous experiences, do you find many that are worth anything special? And will you sell them on eBay immediately or perhaps hang onto them until pennies are more scarce?
Honest questions too. I know that there are coin collectors out there, but I haven't heard of any penny specialists before.
Shortly after the retirement of the penny was announced, a couple of radio announcers in Edmonton did the math on rounding like this: Gas is 90.9 that rounds to 95 cents per litre, every fill is 100L, that's $4 per fill, twice a week means $400 per year due to the penny being eliminated.
The Following 2 Users Say Thank You to Plett25 For This Useful Post:
Shortly after the retirement of the penny was announced, a couple of radio announcers in Edmonton did the math on rounding like this: Gas is 90.9 that rounds to 95 cents per litre, every fill is 100L, that's $4 per fill, twice a week means $400 per year due to the penny being eliminated.
I hope people called them and corrected all of the many things wrong with that.
__________________
Turn up the good, turn down the suck!
The Following User Says Thank You to getbak For This Useful Post:
Shortly after the retirement of the penny was announced, a couple of radio announcers in Edmonton did the math on rounding like this: Gas is 90.9 that rounds to 95 cents per litre, every fill is 100L, that's $4 per fill, twice a week means $400 per year due to the penny being eliminated.
The funny thing is that, because they used a nice round number (100L) no rounding EVER gets done in the correct calcuation.
100L at 90.9 cent per L = $90.90 = no rounding.
And people that can afford $800 of fuel a month probably wouldn't notice spending an additional $400 per year on fuel anyway.
Sorry if this has been addressed before, but are we still able to roll our pennies up and cash them into the bank a year from now? I have a piggy bank with who a ton of pennies and wondering if I'll need to roll them up now, or can I do it later with no issues? Thanks.
That's exactly what you are supposed to do. The banks are how the pennies get taken out of circulation and they know it will take years.
A long time ago, when I worked at the currency processing centre for a major bank, we'd get bags of paper bills and coins that would get sent off to be destroyed. This was currency like $2 bills, $1000 bills, etc. but we'd even get really bad condition stuff from the 50's, etc.
Shortly after the retirement of the penny was announced, a couple of radio announcers in Edmonton did the math on rounding like this: Gas is 90.9 that rounds to 95 cents per litre, every fill is 100L, that's $4 per fill, twice a week means $400 per year due to the penny being eliminated.
Just don't pay for gas with cash. You realize that prices are not rounded if you pay by debit/credit/speed pass, etc. right?
