Monday, July 20, 2009

"50% Discount" vs "Buy 1 Free 1"

Everyone know "50% discount" and "Buy 1 Free 1"; however there must some consumers do not realize that basically, "Buy 1 Free 1" = "50% Discount", both mean selling a product or service at 1/2 price. Is it exactly 100% the same? If we try to nitpicking, and study it thoroughly in different angle, there actually a different between "50% Discount" & "Buy 1 Free 1"!

Customer View:

For an example, there are 2 shops having a promotion on a same product, while shop A offers "50% Discount", shop B offers "Buy 1 Free 1". Which shop will you most likely to visit? (assume that in normal days, shop A & B selling the product at the same price, RM100).

1. If once you had 1 unit, you will never need 2nd unit; or no one around you need must go for "50% Discount", so that you can save RM50. "Buy 1 Free 1" causes you spend RM50 on an unwanted 2nd unit, in other words, RM50+1 unit of product gone wasted! So how much you loss in this purchasing? I'm not sure too......^ ^

2. If you alone may need more than 1 unit, or people around you might need it too, either "50% Discount" or "Buy 1 Free 1" is a right choice. But make sure the quantity you needed is in "plural" not "singular"!

Businessman View:

1. "50% Discount" can for any product or service; while "Buy 1 Free 1" for limited product & service. For an example, it is so innocent & irrational to offer "Buy 1 Free 1" on a product like the coffin......
2. If majority customers may need a product more than 1 unit, offer of "Buy 1 Free 1" is better idea than "50% Discount". Let say during the promotion period, there are 100 customers come to buy the product A.

Under "50% Discount", some may buy 1, some may buy > 1 (assume that they buy either 1 or 2 units), means during the promotion period, the shopkeeper able to sell out 100-200 units of product A.

Under "Buy 1 Free 1", each customer is forced to buy minimum 2 units of product A. Minimum 200 units of product A to be sold is guarantied. Of course, in normal practice, it may not exactly follow the rules mentioned above.

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