You would think that sucking it up and giving a product away for free when one is purchased would really drive up your sales. The famous "buy one, get one" free offer isn't as good a performer as you think. In fact, quiznos ran a promotion to determine how consumers responded to various offers including BOGOS, $ off on one item, buy. Sandwich and get a free drink and percentage off. The result? Consumers responded best to the $ off offer. Why? Most people only want one item, not two. Percentage offers are too abstract as consumers think in dollars. To further validate this test you can check out inmar.com. They are coupon and promotional experts and the top fortune 500 provider for coupon services. They have a report available that shows dollar off promos beat all other offers in redemption rates for all verticals.
So next time you want to run a promo, save your margin and run a $ off.
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