Which is more persuasive to you: 20% Off or $20 Off?

[jcizzle]

Th op knows its the same guys. He's asking what the will greater stimulate the populace.

When both are equal then advertize the dollar amount. Allows consumer to visualize other uses for the savings such as the movie example mentioned earlier.

When both are not equal then it depends on the discount and purchase value.

Not claiming to know everything about the subject but web marketing is what I do for a living with both small local and large national clients. Studying cnsumer behavior is where most of my research is spent. When someone searches for the weather in Okc i want to know if they are trying to decide to mow the lawn or if they are planning to shop for a parka.

 

[PUMPKIN]

He's asking a marketing type question...

With a set price of $100 for something, which appeals to your sense of a bargain or discount?

Hearing:

20 Dollars Off

-or-

20% Off


As in... "Hey buddy, This normally costs $100 retail, but I'm going to let you have it for (either) $20 off (or) 20% off.

Get it?

you sure?? LOL

 

[HMFIC]

Th op knows its the same guys. He's asking what the will greater stimulate the populace.

When both are equal then advertize the dollar amount. Allows consumer to visualize other uses for the savings such as the movie example mentioned earlier.

When both are not equal then it depends on the discount and purchase value.

Not claiming to know everything about the subject but web marketing is what I do for a living with both small local and large national clients. Studying cnsumer behavior is where most of my research is spent. When someone searches for the weather in Okc i want to know if they are trying to decide to mow the lawn or if they are planning to shop for a parka.

For example are you saying if I'm selling an item for $5 if I advertise 20% off, that's $1, but 20% suuure does sound better. If I'm selling a $200 item then go with the $ amount since it will be $40 instead of saying 20%?

 

[HMFIC]

you sure?? LOL

not really. But then again I'm coming up on 10,000 posts pretty soon so I can't be trusted

 

[mhphoto]

Haha, HMFIC, kroberts2131, and jcizzle nailed it. I'm not sure my finance degree has gotten me much in life but I'm pretty sure I got this scenario figured out…

My main concern is which sounds better. The even hundred dollar price is a bit of an enigma when it comes to discounts, because the % off will always equal the same dollar amount. So I'm just wondering which pulls more weight in the layperson's mind, a "$" or a "%". Now I know this problem goes out the door when you start venturing away from an even hundred, but that's not the current situation.

Anywho, thanks for the answers!

 

[Preacherman]

Hmm. If I understand the riddle and the final cost is "$100" then the actual retail price would have to be $125 for 20% off to equal the $100 and so that is a better bargin by $5. What did I win?

 

[HMFIC]

Haha, HMFIC, kroberts2131, and jcizzle nailed it. I'm not sure my finance degree has gotten me much in life but I'm pretty sure I got this scenario figured out…

My main concern is which sounds better. The even hundred dollar price is a bit of an enigma when it comes to discounts, because the % off will always equal the same dollar amount. So I'm just wondering which pulls more weight in the layperson's mind, a "$" or a "%". Now I know this problem goes out the door when you start venturing away from an even hundred, but that's not the current situation.

Anywho, thanks for the answers!

Make your price $99 and the discount 20% but give them $20 off (technically it should be only $19.80 so they're even getting more than they bargained for).

It has been written, now let it be done.

 

[inactive]

Given the number 20, and not given a total purchase price (I know you said $100, but I am speaking more generally), a percentage is always more enticing to me as I know it's a relatively good discount regardless of the total purchase price (10 dollars, 100 dollars, 200 dollars).

I'm skeptical of the dollar off deals, as I look for the minimum order. $20 only really gets my attention if it is followed by "any purchase $20 or greater"

 

[jcizzle]

For example are you saying if I'm selling an item for $5 if I advertise 20% off, that's $1, but 20% suuure does sound better. If I'm selling a $200 item then go with the $ amount since it will be $40 instead of saying 20%?

BINGO!


Dollar amounts work well when the dollar amount is enough to relate to something else in the consumer's mind. For instance, say it's a $5,000 price tag with a 6% discount. Well, the consumer my say why buy from you over your competitor over a lousy 6%. That's why your marketing would not say 6% but instead say $300 discount and remind them that they'd be saving a car payment. Or a new Mossberg 500 for this crowd.

 

[HMFIC]

BINGO!


Dollar amounts work well when the dollar amount is enough to relate to something else in the consumer's mind. For instance, say it's a $5,000 price tag with a 6% discount. Well, the consumer my say why buy from you over your competitor over a lousy 6%. That's why your marketing would not say 6% but instead say $300 discount and remind them that they'd be saving a car payment. Or a new Mossberg 500 for this crowd.

Gotcha... that makes sense.