If you are a beginner couponing, these are some math tips you need to be aware of before you go shopping! Stores discount their products in two different techniques.
One way is to present the discount as a percentage off the regular price. An item priced at $15.00 that usually sells for $20 is available at a 25% discount. That same number can be presented as a specific dollar amount, or $5 off the regular price. Which is the better savings?
Check the math! You come to the same final price regardless of which discount you apply. (Go ahead, get your calculator and do the math!) Either way, the beginner couponing for purchases will buy the movie for $15.00.
Retail and grocery stores will use both marketing strategies to lure you into buying their products. Do you think consumers know which is the better savings? This is where the surprise comes. No, we don’t! The truth is, customers are more attracted to the discount number and are more likely to purchase an item advertised as being 25% off. The two discounts offer the same savings but consumers perceive they are receiving a better deal with the percentage discount. It just feels bigger than the $5 amount!
Should you assume that stating a percentage discount is always the most effective for a beginner couponing for savings at the store?
Not really. Consider the same scenario but with a bigger price tag. The $20 movie is now a $2,000 computer. If the computer is $500 cheaper than the regular price, that is a 25% discount. With the discount, the computer now costs $1,500.
The consumer perceives the two offers differently. When the item costs $2,000, $500 feels like a better deal than 25%, so consumers are more likely to buy when they see a dollar discount.
Successful store marketers believe in the “rule of 100,” which says percentage discounts work better when the item is priced at less than $100. When the item costs more than $100, the consumer prefers absolute discounts. The rule applies when trying to determine if the consumer perceives a good deal while also influencing other types of behavior. Whether you present the information in absolute numbers or percentages, it will affect how others gauge the difference. Two ounces feels smaller than 15%. A $2 million increase in revenues seems smaller than a 30% increase!
When a beginner couponing for a good deal needs to be aware of these mathematical strategies even at the grocery store! Take note and do the math! Not good at math? Then consider using the calculator on your smart phone to determine the best savings. Be a smart consumer! As a beginner couponing at grocery stores, know these math tips can save you lots of money!