What does pennies on the dollar mean?

Question

I have always heard it in movies but they move on too fast for me to process it.

In: Other

Answer 1

I always take it to mean 4% or less. 5% would be nickels. 10% would be dimes. Etc. So, if you got something worth $100,000 dollars for pennies on the dollar, you paid less than $4,999 for it.

You could also produce something for pennies on the dollar. If you sell something for $100, but it costs you pennies on the dollar to produce, your production cost is under $4.99.

Starbucks comes to mind. That $10 coffee you buy probably costs about $0.15 to produce.