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The price lines offered by a manufacturer often fit within one of the general price ranges (low-end, budget, moderate, better, designer) since apparel markets, are organized around these categories. Within the general price categories, pricelining is sometimes used. Price lining means grouping several items of varying costs together and selling them all at the same price. When price lining is used, the firm has a system of prices at distinct list price level(s). Price lining simplifies, inventory records and simplifies the selection process for the retail buyer and the ultimate consumer. For example, in an extreme case of price lining, a dress manufacturer may offer only one price line that will have a list price of Rs. 79.99. The costs of styles in the line will vary, but because of the manufacturer's pricing policy, all the styles have the same list price. More typically, a manufacturer may offer dresses in three price lines, Rs.199.99, Rs. 59.99, and Rs.89.99.
Manufacturers and retailers in the United States have commonly used odd price endings on their prices such as Rs.10.49, Rs 2.99. The dress manufacturers in the previous examples are using odd price endings. The origin of this practice is sometimes traced to a psychological advantage of making products seem cheaper. The practice of using odd price endings is still common for low-end and budget prices but less common for better and designer goods. Manufacturers must decide whether they will use only one price ending when they set up their price lists. Using one price ending reduces errors throughout the record keeping process.
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