Sometimes, you just know one isn’t enough for your customers. So why not double the joy and slash the price in half? Well, I’m talking about BOGO discounts! Wondering what is a BOGO discount? Don’t worry! I’ve got you covered.

Let’s unpack it together: what "Buy One, Get One Free or BOGO deals" really mean, why it’s such a hit, some pros and cons to keep in mind, and how to make it work like a charm for your business. Ready? Let’s dive in!

What Is a BOGO Discount? Everything You Need to Know

Among different types of marketing discounts, ever come across the term “BOGO” and thought “Wait, what is a BOGO Discount?”

Well, it’s short for Buy One, Get One. The idea’s pretty simple: your customers buy one item, and the second one (same and identical) is either completely free or sold at a steep discount, often 50% off.

This isn’t just a one-industry trick, either. You’ll see BOGO deals everywhere: clothing stores, supermarkets, beauty shops, bookstores, toy aisles, furniture stores, you name it. Businesses tweak it to fit their vibe, but the basic idea is the same: get people excited about grabbing more for free.

Curious about how it works, its pros and cons, or wondering if a “BOGO 50%” deal is the same as “50% off”? Follow along to the next sections, and you’ll find all the answers you’re looking for!

Types of BOGO Discounts

BOGO stands for "Buy One, Get One," as we said before. This strategy mainly comes in two types:

Buy One, Get One Free (BOGO Free)

With this strategy, your customers pay for one item and get a second identical item completely free. Imagine you own a clothing store, and you’re running a BOGO Free deal. You could set it up so that when someone buys one T-shirt, they walk out with another T-shirt for free. Two shirts for the price of one! It’s a no-brainer for shoppers!

Buy One, Get One 50% Off (BOGO 50%)

This one’s a slight twist. Instead of the second item being free, your customers get it at half price. So, let’s say someone buys a T-shirt at full price; with a BOGO 50% deal, they can grab a second one with %50 off. It’s still a great incentive and works well for stores looking to move inventory while keeping their profit margins in check.

• Both versions can be super effective, depending on your goals and how your customers like to shop!

Buy One Get One (BOGO) vs. Buy X Get Y (BXGY)

By now, you should have a pretty clear picture of what a BOGO discount is and how it works. Whether it’s a Buy One, Get One Free deal or a Buy One, Get One 50% Off, the idea stays the same: customers get an extra item, either free or discounted.

But here’s a thought: what if tweaking the traditional BOGO could work even better for your business? Instead of restricting the deal to identical items, why not let your customers mix it up a bit? That’s where the Buy X, Get Y strategy comes into play.

It works like BOGO, but with a twist; the second item doesn’t have to be the same. For example, let’s say you own a clothing store. Instead of offering a second T-shirt for free or with %50 off when they buy their first T-shirt, you could let customers pick a T-shirt when even they buy a pair of shoes.

This approach maintains BOGO's flexibility while encouraging customers to explore more of what you sell. Plus, it’s a smart way to highlight different product categories and boost sales across the board. It's a little tweak, but a big impact!

Buy One Get One vs. %50 Off Discount

As discussed earlier, one type of Buy One Get One (BOGO) discount strategy is when you pay full price for the first item and get 50% off on the second (identical) item.

It may seem a bit confusing at first, and you might wonder if a BOGO 50% discount is the same as just 50% off. Spoiler alert: they’re not! The difference between Buy One Get One and 50% Off isn’t just about math: it’s about perception, psychology, and the value your customers feel they’re getting.

Quantity

BOGO discounts require your customers to buy at least two items to benefit. For example, they pay full price for one item and get the second (identical) item at 50% off or free. In contrast, a 50% Off deal applies to each item individually, regardless of quantity. BOGO encourages customers to buy more, while 50% Off is great for those just looking for one item.

Cost of Discount

For two items, the cost to the customer is often equivalent. Whether it’s Buy One Get One 50% Off or a straightforward 50% Off, the final math might look the same. But the way it’s presented makes all the difference.

Psychology

Here’s where it gets interesting: Psychologically, BOGO plays on the emotional pull of “free.” Humans tend to overvalue “free” items, even when the deal is mathematically the same as a regular discount. That’s why BOGO often feels like a bigger win, even if it isn’t technically a better deal. All in all, it’s all about understanding your customers and their shopping behavior to choose the strategy that works best for your business.

BOGO Discounts: Pros and Cons

BOGO discount is powerful, but it’s not something to throw around without a plan. Here is why BOGO works:

Clearing Out Inventory

Got too much stock? The BOGO deal is great for getting rid of items that have been sitting around for too long. People are way more likely to grab multiple items when they feel like they’re getting a good deal. Who wouldn’t want that second one for free (or almost free), right?

Attracting New Customers

There’s something magical about the word “free.” It just pulls people in. A BOGO deal makes your shop or website super tempting, especially for folks who haven’t tried your products before.

Boosting Sales and Traffic

Slow sales month? Run a BOGO discount, and suddenly, people are filling up their carts. Customers often end up buying more than they originally planned; it’s like they can’t resist the deal.

Encouraging Bulk Buying

Here’s the thing with a BOGO strategy: it nudges people to pay full price for the first item just to snag the second one at no cost (or at a discount). That’s a win-win: they feel like they’ve scored big, and you move more products.

But Here’s the Catch:

BOGO isn’t all sunshine and rainbows. It’s got its downsides, too:

Hits Your Profits

If you don’t plan it out carefully, a BOGO deal can seriously eat into your profit margins, especially if you’re running it on low-margin items.

Might Devalue Your Product

Use BOGO frequently, and customers will start expecting it. You don’t want them to think your products aren’t worth full price. It’s like, “Why pay now when another sale is just around the corner?”

Inventory Headaches

Yes, BOGO can help move stock, but if it flops and doesn’t attract enough customers? You could still end up stuck with too much inventory, and even higher costs to deal with it.

Factors to Consider When Running Buy One Get One Free Promotion Strategy

Alright, let’s keep it simple. Maybe at first, you were like, Wait, what even is a BOGO discount? Fair enough. But now? You’re all caught up, you know the strategies, and you’re ready to make it work for your business. So, what should you consider before and when using a BOGO discount? Here’s the lowdown:

• Understand Your Financial and Business Goals
• Know Your Margins (Cost of goods sold (COGS), Marketing costs for the promotion, Average transaction value during past discounts)
• Choose the Right Type of BOGO Discount (BOGO for free, BOGO %50 Off)
• Choose the Right Product (Have a high enough margin to absorb the discount)
• Consider the Proper Timing (During slow sales periods, Seasonally, to clear out end-of-season stock)
• Test and Track your Strategy (Start with a small, targeted promotion)
• Manage and Track your Inventory (Ensure you have enough stock to meet increased demand)
• Know Your Audience

Buy One Get One Free Promotion Examples

To better understand what a BOGO discount is, let's take a look at some real buy one, get one free promotions examples:

Subway

Subway often runs Buy One Get One Free promotions, especially on their Footlong sandwiches. With this deal, customers can purchase one Footlong and receive another at no extra cost.

Do you know the difference between promotion and discount?

Publix

Publix, the supermarket chain, regularly features BOGO deals as part of their weekly promotions. With these offers, customers can buy one item and get another of equal or lesser value for free. It’s a great way to save on groceries while stocking up.

Burger King

Burger King frequently offers BOGO promotions, particularly on their signature Whopper sandwiches. These deals are usually available through their Royal Perks loyalty program and can be redeemed via their app or website. For example, on Father’s Day (June 16, 2024), Burger King offered a BOGO Whopper deal exclusively for Royal Perks members.

Starbucks

Starbucks has also run BOGO promotions to encourage sales. One common example is when they offer a free handcrafted beverage with the purchase of another. These deals often target specific times or days to help boost customer visits during quieter periods.

How to Run Buy One Get One Free Promotion Strategy

So far, we’ve answered the questions " What is a BOGO discount?” and whether “Buy One Get One 50% Off” is better than a flat 50% discount. Now, let’s take it a step further and figure out how to actually run a BOGO discount for your store.

If you’re using Shopify, you’ve got options. You can either use Shopify’s built-in tools or a third-party discount app to make the magic happen.

How to Maximizing Your BOGO Sales

Here’s a little pro tip: One of the smartest ways to maximize a BOGO promotion is to pair it with other discounts. Think about it: customers are motivated to spend more to hit higher discount tiers, and they still get to enjoy the perks of the BOGO deal. It’s a win-win for both you and your customers.

But here’s the deal: Shopify only allows one automatic discount at a time. You also can’t stack multiple discount codes by default, which can feel a bit restrictive. That’s why a discount app like Discounty.ai is a game-changer. It lets you easily stack and combine different discounts without breaking a sweat, unlocking the full potential of your promotions.

Unlock the Power of Smart Discounts with Discounty

Discounty isn’t just about saving; it’s about making discounts work for you. From bulk and quantity discounts to volume and cart discounts, it’s got you covered. And the best part? You can set up multiple discount tiers super quickly and easily.

That’s not all! Here’s what else you can look forward to:

• Combine different campaigns effortlessly.
• Advanced pricing options to fine-tune your strategy.
• Set specific start and end times for your discounts.
• 24/7 support whenever you need it.
• Flexible plans range from free to unlimited, so there’s something for everyone.

Want to see your business thrive and learn more about discount strategies? Head over to Discounty.ai now and get started!

Read what is volume discount article to discover everything you need to know about this kind of discount.

Final Thoughts on the BOGO Discounts

You might also be asking yourself, “Is BOGO really good for my business?” And honestly, you’ve got every right to wonder! Here’s the scoop:

If you’re running a store with consumable products (e.g., fashion, beauty, or seasonal products), a BOGO discount can work wonders.

But for high-end, niche, or luxury items? Not so much. BOGO doesn’t exactly scream “exclusive” or “premium,” which are the vibes those brands are going for.

• Take Famous Footwear, for example; they’ll run BOGO deals like “Buy One Pair, Get One 50% Off” to nudge customers into buying multiple pairs. Smart move for their business model.
• Now, can you imagine Louis Vuitton doing the same thing? Nope, zero chance. Their brand relies on exclusivity, so a BOGO promo would totally clash with their image.

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