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percentage off or dollars off


Rule of 100

Should you use a percentage off or dollars off? Each method (percent off vs. dollars off) can outperform the other given the right circumstances.  Marketing Professor Jonah Berger offers an easy way to remember to consider psychological perceptions in the Rule of 100.  This rule states that a dollar discount will be more effective for products or services over $100.  For those under $100, things reverse, and a percentage discount will likely be more effective.  For example, comparing the performance of a dollar off vs. percent off promotion on a $20 product may have a different result than similar promotions on a $350 product.  In general, the offer that sounds higher is usually the one that does best.  Because of the initial impression of what sounds best, it is normally considered the best deal. http://www.entrepreneur.com/atricle/278134

The Link Above

On the $ 350 product mentioned above, a $ 50. off coupon generated 170% more revenue than a 15% off coupon. The conversion rate on the sale was 72% higher. The $ 50. the off coupon was perceived to be a better deal, plus customers did not have to do any math. It is always the best policy to Keep it Simple.

Bonus Purchases

The psychological thought process of the consumer is that they have an extra $ 50.  to spend for the same initial price they were willing to pay. The same is true if you give away other inventory that has a high dollar value. This helps you reduce the inventory of items you already have paid for. INVENTORY MANAGEMENT Everybody likes a deal. It is the job of each salesperson to try to upsell, so customers have a fulfilling experience with your company. Remember, perception is reality.


The price of the product you are trying to sell is the key ingredient to answer this question properly. Include a time frame when giving a percent off or dollar amounts off your price. People will respond when you set a time frame because we all want a deal.