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  • This is a coupon for Burger King's Croissan'wich, and it's promoting a buy one get one free deal.

  • Buy one breakfast sandwich at full price, get a second one for no extra cost.

  • But one customer found that something was off about the deal,

  • when she was charged two different prices for the sandwich.

  • When she ordered a single sandwich, the price was $2.16.

  • But when she ordered two sandwiches and used the BOGO coupon,

  • the price of each sandwich was $3.19–more than a dollar more.

  • This went on for years before Burger King was sued for overcharging customers.

  • BOGO is so appealing that it's hard for consumers to see it for what it is.

  • "Buy one, get one." It's a thinly veiled attempt to convince a customer to buy more than one item at a time.

  • For a thrifty shopper, BOGO can sound like the best way to get more bang for their buck,

  • but often it's simply not as good a deal as it appears.

  • Consumers perceive the quality of a bargain based on the price they pay compared to the original list price.

  • Take this food processor on Amazon for example.

  • The price on sale is $35, an amazing 52% off the $75 list price.

  • The problem is that Cuisinart doesn't list the item for Amazon's regular price

  • and based on an analysis of tracked prices over time,

  • Amazon has never sold it for more than $40 in the past 10 years.

  • The cheating that goes on is rampant.

  • Retailers are guilty, often, of distorting the regular price, raising the regular price.

  • And several companies have been caught distorting prices in conjunction with BOGO offers.

  • "The suit accused Visionworks of inflating the price of the first pair of glasses

  • to partly cover the costs of the second, supposedly-free pair, making it not actually free."

  • It can be hard for consumers to tell whether BOGO is fair or deceptive,

  • and often their judgment is clouded by one four letter word, "free."

  • I mean, "free" is a tremendous motivational trigger,

  • and they like the opportunity to expand the deal by buying more than one of an item.

  • Very often consumers don't do the math.

  • Buying more than one item means consumers spend more money than they intended, not less.

  • For example, say you want to buy a sweater that's normally $80.

  • Sweater A is listed at a 20% discount.

  • Sweater B is listed at full price, but has a buy one, get one free deal.

  • While the second option may get you two sweaters,

  • you've just spent more in total than if you just focused on the 20% discount.

  • Let's say those sweaters are on a buy one get one 50% off deal.

  • Option 1: you buy one sweater for $80.

  • Option 2: the first sweater would be $80 and the second would be half off.

  • Translated into a straight discount, the total saved from the BOGO deal would be the same as a 25% off deal,

  • but the amount of money you spend in store has grown, because you bought two items.

  • Some BOGO deals only apply to items with lesser value.

  • For example, if you buy that same sweater and a $10 pair of socks, you still pay $80 for your total purchase.

  • If you decide to get a sweater and $150 coat,

  • the sweater would be counted as the free item and you'd still be shelling out $150.

  • For most deals, you're better off waiting for the one item you wanted to go on sale

  • rather than purchasing it through a BOGO deal.

  • Customers, I won't say "fall for it," but they go for it nonetheless.

  • BOGO disguises the fact that, unless you already intended to buy two items,

  • it really isn't all that big of a discount.

  • So BOGO deals can be fantastic, if you're a shopper looking to buy in bulk and stretch your dollar.

  • But for most of us, free isn't always the best option.

  • Well, just do the math.

  • If it looks too good to be true, it's too good to be true.

This is a coupon for Burger King's Croissan'wich, and it's promoting a buy one get one free deal.

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