# Pricing Policy

### Effective September 21, 2008

After more than a quarter century of holding the line on prices, inflation has caused 99¢ Only Stores to now add a charge of .99 cents (.99 of one cent) onto the base unit price for our merchandise, and we want to clarify how our 99/100 of a cent pricing works.

First, we want to emphasize the price we charge for the items we sell will appear in total form on the register display before the purchase is made. This is the price that will be charged for the total purchase. If our customers do not believe this price is correct, or do not wish to pay it, they do not have to complete the transaction. We are committed to making sure no transaction is completed unless and until the price is acceptable to our customers. When the final price is tallied and displayed on the register, please know you have the opportunity not to complete the transaction. Once the purchase is made, you have agreed to the purchase price and so it is important that customers with any concerns or questions not proceed before the transaction is made, i.e., before payment is made.

**Put simply, the price that appears on the register is the total price we are charging, with applicable tax added, for the items you have selected; if you complete the transaction and pay this price, you are agreeing to this price for the items selected and presented for purchase.**

__OVERVIEW EXAMPLES__

*For example:*

**Single Purchase of Base Price Item**

**Single Purchase of Items Grouped for Sale at Base Price (for example., 2 for 99.99 cents)**

**Single Purchase of Items Grouped for Sale by Individual Base Price (for example, 10 items at 99.99 cents per individual items)**

**Multiple Purchases of Different Items**

__EXPLANATION OF ROUNDING FOR FINAL PURCHASE PRICE__

*Initial Calculation*. We calculate the base price of an item to 4 decimal places, and we do not factor the remainder beyond 4 decimal places.

*Extended Line Price*. We then multiply the number of items purchased on each receipt line by the base price and show the result out to four decimal places on the receipt (and to 2 decimal places on the screen).

*Transaction Subtotals*. We keep separate subtotals for the taxable lines and non-taxable lines, and each subtotal is calculated to 4 decimal places. (Since the extended line prices and the subtotals each have 4 decimal places, there is no rounding needed for the subtotals. The subtotals are not shown on the receipt, but they are kept internally and used to compute tax, food stamp, and transaction totals.)

*Sales Tax*. We multiply the 4-decimal taxable subtotal by the tax rate to get the sales tax amount. We keep 4 decimal places internally, and we display sales tax on the receipt rounded to 2 decimal places. We round the four-decimal sales tax down when the fraction of a cent is from 0.0001 to 0.0049, and we round up to the next cent when the fraction is from 0.0050 to 0.0099.

*Transaction Total*. We add the taxable subtotal (4 decimal places), the non-taxable subtotal (4 decimal places), and the sales tax (4 decimal places), and round the total to 2 decimal places to get the transaction total. As with sales tax rounding, we round down when the fraction of a cent is from 0.0001 to 0.0049, and we round up to the next cent when the fraction is from 0.0050 to 0.0099.

^{st}item as part of that same group transaction will result in downward rounding (such that, for example, if the 51

^{st}item is priced at 99.99 cents, the price of that 51

^{st}item would round down to 99¢). Thereafter, every 100

^{th}additional item ending with a 99/100¢ charge that is purchased as a group as part of a single transaction will also round down to the nearest penny, such that the 51

^{st}item, the 151

^{st}item, the 251

^{st}item, the 351

^{st}item, and so on, will round down to the nearest penny, whereas all other items will round up to the nearest penny.

__NOTES TO PRICE ROUNDING AND CALCULATION UNDER THIS METHOD__: