Is BOGO worth it ?
Recently, I went to a Department store chain and I found a BOGO (buy one get one) deal for a shirt that totalled 24 dollars. The deal meant that the equivalent price of one shirt is 24 divided by 2 equal 12 dollars.
Two weeks earlier, in the same store i had seen a sale for the same set of shirts but the difference being each shirt was sold for a price of 10 bucks.
The question that popped up in my mind was :
which was a better deal?
- the BOGO deal that priced the shirt at 12 bucks
- the single deal that priced the shirt at 10 bucks?
The answer from a mathematical perspective was definitely the deal that was priced at 10 bucks. However; when i talked to an agent at the store, the agent revealed that the BOGO deal was more successful because customers were attracted to the ‘Free’ deal.
The YALM was the power, influence, and the ability of the word FREE in generating more revenues.
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