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Pricing
Tactic

Give Percentage Discounts for Prices Below $100

Below $100? Give a percentage discount (20% off). Above $100? Give an absolute discount ($20 off).

Above $100? Discount by absolute amounts. Below $100? Discount by percentages.

Overview

Consider a $150 blender. A 20% discount would be $30 off. So which is better to say: 20% off or save $30?

The answer depends on your price:

  • Over $100? Give absolutes (e.g., $30)
  • Under $100? Give percentages (e.g., 20%)

In both cases, you show the higher numeral.

  • $50 blender: 20% off is the same as $10 off — yet 20 is a a higher numeral than 10.
  • $150 blender: The absolute discount ($30 off) is a higher numeral (González, Esteva, Roggeveen, & Grewal, 2016).

  • González, E. M., Esteva, E., Roggeveen, A. L., & Grewal, D. (2016). Amount off versus percentage off—when does it matter?. Journal of Business Research, 69(3), 1022-1027.