And the consequence of that is that I sometimes can't remember some products' prices.

"Was it $699 that I mentally converted to $700, or was it $799?"

I wonder if businesses actually sell more if their products are priced like $9.95 or $9.99 instead of $10, or that it's just based on the expectation that such prices are more attractive to the customer. Unfortunately, the Wikipedia article [http://en.wikipedia.org/wiki/Psychological_pricing] doesn't mention whether any research was done to verify this, much less any results.

I heard tell this practice arose because of some newspaperman who struck up deals with local businesses to salami-slice pennies off their prices so that people would have more pennies with which to buy his one-cent newspaper.

If true, I don't think he realized the Sorcerer's-Apprentice-like consequences of his actions, as I'm now AWASH IN USELESS PENNIES.

I know that most prices at Nordstrom end in .95 whereas Nordstrom Rack prices typically end in .97.

They have a very liberal return policy so it's a simple way to encode where the product was bought so customers can't pass off outlet store items as if they were bought from Nordstrom proper.

That's one beneficial use to psychological pricey but I too would rather pay nice round numbers. It makes it easier to calculate sales tax too.

Yes. I bought some food from a place recently that had all of their prices listed on the board as whole numbers. It took me a couple seconds to register as a price because it's so unusual. I loved it though.