When you’re running an online store, it’s important to use strategies to help attract and retain shoppers. One of the most effective ways to do that is by offering discounts and coupons. There are many types available, with two of the most popular options being a BOGO deal and a 50% off discount.
Although they have a few similarities, these offers have a handful of key differences. Learning about how each one works and the pros and cons of using them can make it easier to choose the one most likely to generate maximum results.
In this post, we’ll explain what BOGO and 50% off deals are and the differences between the two. Then we’ll provide you with a checklist to help you understand when it’s best to use each one. Let’s get started!
What Is A Buy One, Get One (BOGO) Deal?
Buy One, Get One (BOGO) deals are incredibly popular.
They provide a way for you to incentivize shoppers to make purchases without risking a significant amount of profits. Also known as 2-for-1 deals, BOGO promotions refer to a pricing offer that involves giving customers an additional product for the purchase of one:
While it gives the shopper the satisfaction of getting something for free or at a discounted rate, you’re still able to profit from the total quantity of sales. For instance, let’s say you own an online apparel store. You could offer a “Buy 2 Shirts, Get One for Half Price” deal.
In this scenario, it may seem as if the customer is getting a shirt for half (50%) of the price.
However, because they need to purchase two at the regular retail price, it ends up being a lower overall discount, closer to 17%.
Also, studies have shown that customers are sometimes more inclined to go for BOGO deals. This can, perhaps, be attributed to the idea of getting something for free.
There are multiple ways to leverage BOGO deals. You can use them with single products, such as Buy X of Product, and Get X of Product. You can use them with groups of products. For example, Buy Any Product in X Category, and Get X of Any Product in Category X.
What Is A 50% Off Discount?
If you want to offer your customers a half price for a product, it’s known as a 50% discount. Unlike a BOGO deal, this type of offer doesn’t require shoppers to pay full price for an item to receive or use the coupon. It’s a percentage-based discount that simply slashes the regular retail price in half:
This can be an incredibly appealing offer for consumers. Any type of discount or promotion can grab attention. However, getting something for half of the price is considered quite a steal.
There are many different ways you can use a 50% discount to attract customers and increase sales. For example, you can use a half-off coupon as a reward for members registering or signing up for your site, meeting a certain cart subtotal minimum, or purchasing products from a specific category.
They can also be used for store-wide promotions.
With percentage-based discounts, it’s important to consider shipping costs. For instance, many store owners will offer free shipping for orders placed over a certain amount. If a shopper uses a 50% discount on an item, and that brings their price below the eligibility minimum for free shipping, they’ll still need to pay that difference. If it’s a considerable amount, they may not find it worth it.
BOGO Vs. 50% Off Discount: When It’s Best To Use Each
As a store owner, one of the most important decisions you can make is how to price your products and which promotions to run. The more options you have, the better.
Our Advanced Coupons plugin lets you easily create any type of coupon, discount, or promotion:
This includes 50% off and other percentage-based discounts, BOGO deals, and more. You can also configure the terms, conditions, and restrictions to ensure you’re maximizing profits.
That said, once you have your WooCommerce discount solution in place, you still need to decide which type of deal to offer. Let’s take a look at some essential considerations.
When to use a BOGO deal?
BOGO deals can be ideal when you’re cleaning out your inventory and want to get rid of excess items. This might be the case when you have seasonal items, products that are going out of stock or production, or products you purchase in bulk.
Another consideration is taxes. BOGO promotions can help you clear inventory before tax season. Suppliers typically underwrite these offers whereas a 50% off deal might be written off as a loss.
It’s also important to consider your niche, target market, and demand over time. Would having two of the same item be practical for customers?
For example, many people shopping for frequently used household cleaning products would likely appreciate the two-for-one deal. On the other hand, that may not be the case for homeowners purchasing a refrigerator.
Using a BOGO deal can also be useful when you don’t want to affect the perceived value of an item. Offering something for half the price can give the impression that the value is now lesser than it once was. On the other hand, BOGO maintains the original value since it’s still being sold at full price.
To summarize, it’s best to use a BOGO deal when:
- You need to clear out your inventory
- You’re selling seasonal or perishable products
- You sell in unit-based or bulk items
To increase your profits, it’s smart to consider implementing certain conditions for these discounts. For example, you can use it as a reward for returning customers as part of a loyalty program.
When to use a 50% off discount?
A percentage-off deal can be the best option when you want a flexible promotion and to attract as many customers as possible. It can be an excellent choice when you’re not worried about getting rid of your inventory or moving a certain product or category of products.
While a 50% off discount can help move products, it generally won’t be as effective as BOGO deals, since they’ll move one item at a time. It can take longer than you wish to clear out your stock.
The demand for products is also worth considering. If certain products in your store aren’t selling well, a BOGO deal likely won’t yield favorable results.
Similarly, if there would be little use for a customer to have two of the same items for practical purposes, many would likely prefer and respond to an offer for half off the retail price of one product.
It’s best to use a 50% off discount when you:
- Want a simple, flexible promotion that’s easy to deploy
- Are running the deal on cheaper products
- Want to use it across your stores
The important thing is to be aware of your profit margins and only use the half-off discount on items that may otherwise go to waste.
As with BOGO deals, you can leverage gamification methods to offer the discount as an incentive. For instance, you can make it only applicable to customers who join your rewards program.
It’s important to remember that you can make a profit and satisfy your customers with both a BOGO deal and a 50% off discount. You have the potential to make the same amount of money, but the results and long-term effects can differ.
In this article, we discussed the key differences between a 50% off discount and a BOGO deal:
- What Is A Buy One, Get One (BOGO) Deal?
- What Is A 50% Off Discount?
- BOGO Vs. 50% Off Discount: When It’s Best To Use Each
Whether you want to create and use BOGO or 50% off deals on your website, our plugin can make doing so quick and easy. Signup for Advanced Coupons Premium today to get started!