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Expressing Discounts is a Tricky Businesses

Expressing Discounts is a Tricky Businesses

Consider this scenario. Bob manages a local store and wants to increase sales of Bisto Shepherd’s Pie. He decides to slash the price from €1.50 to €1.

Bob can express the discount in two ways below. What would you do?

a)  Bisto Shepherd’s Pie. Save 50c was €1.50 now €1

b)  Bisto Shepherd’s Pie. Save 33% was €1.50 now €1

Most retailers tend to go for option a. However, the intent to purchase is greater when savings are presented as percentages rather than absolute discounts. If the discount is less than 33%, stores tend to highlight the saving in cents.

If the saving cannot be presented in familiar percentage values, such as 33% or 50%, retailers will often revert to highlighting the discount in absolute terms. This is a risky move as it can reduce the value of the discount in the consumer’s eyes.

What do you think?

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