Curse of the Bargain hunter: what to do with BOGOF? #102
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How do we handle BOGOF and similar discounts?
Is Buy 1 Get 1 Free a 100% discount or a 50% discount?
If you have a buy one, 60% discount on the second, is that a 30% discount on one item?
Is 3 for 2 a 66% discount?
Or do we just ban discounts that aren’t directly for one item?
What about conditional discounts that only apply if you have a store card, or if you have a minimum spend?
I would either go for the following:
compare the discount of the full offer
This option would be: look at what cost a new customer would need to make to reach the lower offer.
Examples:
50 euros cashback when buying a TV of 1000 euros --> nett cost of 950 euros for a 1000 euros nominal offer. Thus: 5% discount
2nd product free (cheapest product variation) --> 50% discount, since you could buy the same product twice
2nd product half price --> 25% discount
Singular product variation:
Consider what discount you would get according to the sticker, when buying one product. 3 for 1 doesn't apply for it doesn't apply when buying one product, and thus wouldn't apply.
Some further notes
I think the other variations of the rule are too complex or nonsensical. Counting a 2-for-1 offer as 100% discount does not make sense to me.
For store cards I would say: if you can grab one (or take one from google images) then its probably okay, but if you need to get it sent to your home or pay for getting the card then I'd say it shouldn't count. That is, one could use google to look for "Albert Heijn Bonuskaart" and use one of those.
My preference would be the first idea: you look at the offer-price for the total deal and compare it to the price without the deal. This feels the most "in the spirit of the curse".
+1 for looking at the full offer, where BOGOF is a 50 % discount and a 3-for-the-price-of-2 is a 33,3... % discount.
For the conditional discount question, I have some edge cases to consider:
I would say that if most people buying that product or service can get the discount, then it counts. So signing up for a free account or even the one-off coop membership fee would be fine. The rest gets really difficult to draw a line so I would say not allowed.
Similarly, I would say a minimum spend requirement is fine if regular consumers of that product or service will realistically regularly hit that.
with paid-for discount perks, the percentage would change based on how much you spent and are thus incompatible with a game
like a €25 for 10% discount, well, if i only buy something that would cost €2.50 there, i have paid €27.25 for something that would have cost me €2.50, and thus my discount is -1090%, if i buy 25€ of stuff, i have paid 25+22,50=47,5=-90%, if i buy 250 worth, 25+225=250=0%, 2500=25+2250=2.275=9.1% and then after that each factor of ten adds another 9 in the middle
What do we make of this, though?
While the discount is variable in a buy any 2 get any 1 free, the technique to reach the maximum value of 33.33% is clear and doesn’t have the Zeno’s paradox problem that a membership does
I would keep it simple:
A discount is a discount only if anyone can get it, regardless of status, memberships, gender, age, tickets, etc. Mayhaps if you can get it by filling in any email address (like an Albert Heijn bonuskaart in the Netherlands), or through an app (Lidl Plus), without other extra costs attached to it.
I'd personally go for something like: the discount is valid:
So also no 100% discount for things like: you can pick up a trailer for free if you rent a home with DerpyDerp Housing, or otherwise it'd cost you 50 euros per day.
3 for 2 deals generally say "Cheapest product free" btw, so then it's a maximum of 33% discount. Since you can achieve that one through buying 3x the same product, that's also the available discount.
A funny side-effect of the Bargain hunter is that Dutch pharmacies give ludicrous discounts because the base prices are idiotic, whereas German pharmacies do not (but have base prices that are effectively lower than the Dutch discounted version)