BOGOs Come Under Scrutiny

Discussion
May 28, 2003
George Anderson

By George Anderson

The Beacon Journal in the Akron, Ohio area recently conducted a price comparison study that it says demonstrates items on sale as a buy-one, get-one had significantly
lower single-unit prices before the BOGO went into affect.

According to the paper, “Coffee cost an average of 27 cents more a pound than in February; tuna, 20 cents more a can; and stick margarine, 47 cents more for a 1-pound box. All
were featured as buy-one, get-one free specials in at least one of the stores surveyed.”

Moderator’s Comment: Do buy-one, get-one promotions reduce a retailer’s credibility with consumers?

Most consumers, we believe, understand the single-unit price of an item used in a BOGO program has a higher “suggested retail price” than it would if being
sold one at a time.

BOGO purchases are made because consumers assume that even with the higher base price the two-for-one deal is just that – a deal. [George
Anderson – Moderator
]

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