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Sometimes a BOGO is better than a discount

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biophase

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Sometimes when we decide to do a sale, we think of a sale like 25% off everything. Sometimes we do a Buy one get one free. You might think that a BOGO would make you less money than a 25% off. But until you run some quick numbers your never know.

For example, imagine you have something that costs you $20 and $5 to ship, and you sell it for $100.

If you did a 25% off coupon, the customer would pay you $75. You would make $50 on the sale. ($75 - $25 = $50)
But what if you did a buy one get one free? Your customer would pay you $100. You would make $50 also. ($100 - $25 - $25 = $50)

When I offered both deals, guess what headline converts better and makes them visit your store?

Black Friday Sale. Buy one get one free on everything.
or
Black Friday Sale 25% off everything.

To the customer the BOGO deal is clearly better. Get 2 for $50 each instead of 1 for $75.
 
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Zaratustra

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Jul 24, 2019
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Sometimes when we decide to do a sale, we think of a sale like 25% off everything. Sometimes we do a Buy one get one free. You might think that a BOGO would make you less money than a 25% off. But until you run some quick numbers your never know.

For example, imagine you have something that costs you $20 and $5 to ship, and you sell it for $100.

If you did a 25% off coupon, the customer would pay you $75. You would make $50 on the sale. ($75 - $25 = $50)
But what if you did a buy one get one free? Your customer would pay you $100. You would make $50 also. ($100 - $25 - $25 = $50)

When I offered both deals, guess what headline converts better and makes them visit your store?

Black Friday Sale. Buy one get one free on everything.
or
Black Friday Sale 25% off everything.

To the customer the BOGO deal is clearly better. Get 2 for $50 each instead of 1 for $75.
But this way you will need to deal with twice more shipping of goods for the same $50 of profit. With more stuff, more things can go wrong.
 

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