RIP the Canadian penny

Discussion in 'Miscellaneous' started by 23skidoo, May 4, 2012.

  1. Australis

    Australis Writer Admiral

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    1c and 2c both. Now the lowest denomination is 5c, lots of rounding up/down.
     
  2. Australis

    Australis Writer Admiral

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    When they brought the $1 coin in, they took the $1 bill out, which encouraged use. I'm guessing the US$1 bill hasn't gone out of circulation.
     
  3. RobertVA

    RobertVA Fleet Captain Fleet Captain

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    I'm thinking the majority of coins enter circulation as change retailers buy from their bank. The retailer's cashiers make change from the compartments in the cash register trays. Since those trays don't have compartments for dollar or half dollar coins the retailers don't buy them. Discontinuing the penney would make a compartment available for dollar coins, although there would be a transition period until customers accept rounding their change to the nearest nickel.

    Sales tax tables, even in electronic form, would probably be adjusted by the aplicable level of government to make the register total after taxes an even multiple of $0.05

    I suspect many retailers will experience some reluctance to pricing merchandise at even multiples of a dollar. They are too fond of their illusion that customers think $9.99 is significantly cheaper than $10.00. Many of those $x.99 prices will drop to $x.95 until the retailers find it necessary to raise them another $0.50 or even $1.00.
     
  4. Ramicus

    Ramicus Lieutenant Junior Grade Red Shirt

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    When a person above lower-middle class drops a penny, they probably won't pick it up. It doesn't serve that much of a purpose until it's in a homeless person's cup. But as people are saying, it serves a great purpose in "price-shaving," since everybody knows that $X.99 is INFINITELY cheaper than $(X+1).00.

    That being said, I really hope we don't lose the 'Merican penny. Honest Abe is one of my favorites.
     
  5. Timewalker

    Timewalker Cat-lovin', Star Trekkin' Time Lady Premium Member

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    Yeah, I'll concede that when we switched to loonies, the change compartment in my wallet wore out faster than I'd expected, so I started cleaning out my change daily and only leaving home with enough for a couple of phone calls (this was in 1987).

    Good grief, it's not like it's a mountain of them! :lol:

    One of the first things I discovered about loonies is that I could put 25 of them in a belt pouch and wear that with my SCA and SF costumes at events and conventions. I remember that when our local group all went to a camping event together, we pooled our loonies and paid the gate fees with a pouch full of coins - the way people in medieval times would have done. It added to the atmosphere and "getting away from modern times" feel of the weekend. :)

    Here's a suggestion: I don't know what size US dollar coins are, but in Canada, it's extremely serendipitous that you can fit exactly 25 loonies in a 35mm film canister or a standard prescription pill bottle. Larger prescription pill bottles can comfortably hold 25 toonies ($50). That makes it easy to find a place to keep the loose coins, and simple to take to the bank if you want to exchange them for paper money.

    If your bank will only accept rolled coins, just get some wrappers and roll the damn things. There have been coin wrappers on the market for a long time now that don't require actual rolling and wrapping - just drop the coins in the cardboard or plastic tube, close it, and you're done.

    Only 30 years? I still routinely see coins from the '70s and even sometimes from the '60s.
     
  6. MacLeod

    MacLeod Admiral Admiral

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    Well it depends on the size of the compartment(s). Yet retailers manage in countries where the 1.00 coin has replaced the 1.00 note.

    Someone earlier mentioned mens wallets not being designed for coins, so what you could find happening. Instead of saying getone 5.00 and three 3.00 notes, you get one 10.00 note. Which means you give out two 2.00 coins.
     
  7. RoJoHen

    RoJoHen Awesome Premium Member

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    It is. It is absolutely a mountain. It's like the dwarf kingdom from the Hobbit. I don't want to have to fight off a dragon every time I cash out my drawer.

    Keep in mind, I am opposed to all coins. They end up in jars around my house or on the floor of my car. I don't actually use them for anything, and more than anything they just make a mess.
     
  8. Timewalker

    Timewalker Cat-lovin', Star Trekkin' Time Lady Premium Member

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    I'll admit that I don't use my nickels or dimes much. A dime makes a handy emergency screwdriver, though, which is why I make sure to always have one around.

    Loonies and toonies end up getting used in vending machines and parking meters. They often get tossed in charity cans, and they're crucial for apartment washing machines that don't work on tokens or electronic cards.
     
  9. Marc

    Marc Fleet Admiral Admiral

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    Not really.

    The rounding rules are generall well defined. A price of $x.99 would round up to the nearest whole dollar, x3 would round upto x5, x2 would round down to x0.

    don't drive or use vending machines that much but for me washing machines and bus fares are the big coin uses.

    Laundry I need loonies and quarters for, bus fare takes any but it's damn tedious and slows things down if you have to drop 25 dimes in the machine (plus you're required to have exact fare)
     
  10. Davros

    Davros Fleet Admiral Admiral

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    You can mail them to me. I don't mind. :)
     
  11. The Dominion

    The Dominion Fleet Captain Fleet Captain

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    Well, I for one think this is a centsless change.
     
  12. RobertVA

    RobertVA Fleet Captain Fleet Captain

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    But there isn't any regulation on what retail prices are set at. Retailers can set them at any value they please. If the government makes progress taking pennies out of circulation retailers will simply set prices at even multiples of $0.05, which, before the addition of sales taxes, will always add up to a multiple of $0.05. They've got this theory that a significant percentage of consumers perceive that last penny or nickel, makes a significant difference because it makes the dollar column bigger.

    Prices at $x.95 aren't that unusual anyway. Certainly more ordinary than even dollar prices (except a places like Dollar Tree where the only things that aren't $1.00 are two or three for $1.00)

    As I indicated above, any rounding will only be necessary on the sales taxes (5% tax would change a full $0.05 when the sub-total reaches $x.50).
     
  13. Timewalker

    Timewalker Cat-lovin', Star Trekkin' Time Lady Premium Member

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    Thing is, though, sales taxes are different from province to province. Some have the harmonized tax (provincial + GST), and others don't. My own province of Alberta doesn't have a provincial tax, so all we need to calculate is the 5% GST.

    If you pay by debit or credit card, the cent-amount is exact - no rounding (since no physical pennies are involved). Only if you use cash, do you need to fret about rounding up or down.