The shady economics of ‘buy one, get one free’ deals

Let’s imagine you’re hankering for a treat and you are offered a choice: A Hershey’s Kiss for $0.01, or a much higher-quality Lindt truffle for $0.15. Which would you go with? In his book Predictably Irrational, behavioral economist Dan Ariely ran this exact experimentand found that 73% of folks chose the pricier Lindt. But when he changed the pric...

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The Shady Economics Of ‘buy One, Get One Free’ Deals

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Why 'Buy One, Get One Free' Deals Aren't Always As Good As They …

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Jan 19, 2023 · It might normally retail for $4.99. And in that case, the cost of two full-priced books actually comes to $9.98, which means you're actually spending a penny more on the BOGO …

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Why "Buy One Get One Free", & Not Half-price Off? - Straight Dope

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Jul 20, 2020 · -Have a buy one get one free sale and advertise it, the lower priced one is free. Set price during the sale at $12/lb (really some unbelievable prices sometimes during such a …

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Customer Doesn’t Understand What Buy One Get One Free Means

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Because it’s not how it’s being rung up. Buy one get one always discounts the second item at 100% and you do not get the first item on its own at 50% as it is a conditional discount. Half off …

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Buy One, Get One Free: The Marketing Strategy To Boost Sales

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If you sell that for a 50% discount, you’ll end with $2.50 in profit ($10 * 50% = $5 minus $2.50). Now instead of a 50% discount, the promotion is to buy one of Product A and get another one …

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FAQs about The shady economics of ‘buy one, get one free’ deals Coupon?

What is Bogo (buy one get one)?

BOGO (Buy One Get One) is a well-known sales promotion strategy that provides value to shoppers by offering an additional item for free or at a significant discount upon purchasing an initial product. Businesses use such offers to increase sales volume, clear inventory, attract new customers, and promote new or underperforming products. ...

Are Bogo sales a good deal?

Well, BOGO sales are typically used to lure customers into stores to get them to purchase not only the advertised sale price items but also other items while they are there. Therefore, while BOGO’s would appear to be excellent deals, they can also cost you in several ways. ...

How much money does a Bogo sale make?

If they run a standard 50%-off sale, they make a $30 profit ($50 – $20). With a BOGO, they offload two products instead of one and walk away with the same profit per pair. A buy one, get one free is a glorified 50% sale (visual: Zachary Crockett / The Hustle) ...

Is buy one get one free a good deal?

“You’re often charged a price that nobody has ever paid; anything that’s free is just carved off the regular price.” Another misconception with buy one, get one free deals is that your total utility (satisfaction or happiness) is higher since you paid less for two items than you would’ve at list price. ...

What is a Bogo sale?

The term BOGO is used by grocery and retail stores to describe a buy-one-get-one-free sale. This means, if you purchase one item at the retail price, the second item (usually identical) is FREE. Sounds great, right? Lot’s of people like getting free stuff! ...

What is Bogo & how does it work?

BOGO is the acronym for “Buy One Get One,” a sales promotion strategy used in the retail sector. Such offers provide customers with a free or significantly discounted item upon purchasing an initial product. This tactic creates added value, encouraging shoppers to purchase more to get the deal. ...