Discounts on discounts can confuse

August 18, 2018 at 3:07AM

The sign at a Herberger's entrance on Thursday said "Last 12 days," which means the department store chain is likely closing around Aug. 26.

Nearly all the remaining merchandise — and in some locations, that is not much — is marked 70 to 90 percent off with an extra 10, 20 or 30 percent discount.

So does that mean that a sweater marked 90 percent off plus an additional 10 percent off is free?

Unfortunately, no.

Bargain hunters should be aware that additional discounts cannot be added together.

For example, if a $100 sweater is discounted 90 percent, the new price is $10. The additional 10 percent discount is deducted from the $10 subtotal, which is $1. So a $100 item marked down 90 percent and 10 percent would cost $9.

Retailers use shoppers' fuzziness about math to make a deal seem better than it is.

A BOGO or "buy-one-get-one" offer is a good example of that.

Initially, a BOGO usually meant that a consumer bought one item and got an identical second one free, a 50 percent savings. Then it began to change to "buy one and get another at 50 percent off." To some, that may sound like getting 50 percent off if two items are purchased. It's actually 25 percent off each because the first item is sold at full price and the second item is 50 percent off.

For example, say a $10 bottle of detergent is on a 50 percent off BOGO. The first bottle is at $10 (regular price) and the second bottle is $5 (50 percent off $10). The total for both is $15 on a BOGO sale, regularly $20. That's only a 25 percent discount on the two bottles.

Why do retailers like BOGOs? They want shoppers to buy more. Many, but not all, consumers realize that when an ad says "10 ears of corn for $1," the consumer is not required to buy 10 ears unless stated in the ad. Whether a shopper buys two ears or more, they are still 10 cents each.

But when an item is on a BOGO sale, the consumer is required to buy multiples to get the discount.

Frontier Airlines prices nine one-way trips from MSP at $39

Speaking of discounts, Frontier Airlines announced Tuesday that it is bringing back its one-cent sale to nine destinations from Minneapolis-St. Paul International Airport.

Including taxes, the one-way, nonstop flights are $39 to Raleigh Durham (RDU), Austin, Texas (AUS), Cleveland (CLE), Denver (DEN), Jacksonville, FL (JAX), Colorado Springs (COS), Trenton, N.J. (TTN), and Charleston (CHS).

Here's the fine print: Purchases must be made by Sunday.

The sale price is valid for travel only on Tuesdays and Wednesdays. Fares are one-way and do not require a round-trip purchase. Change fees of up to $99 apply, but tickets can be canceled for a full refund within 24 hours. Similar to Spirit, Frontier is a budget airline that charges extra for checked bags and luggage in the overhead. Only bags placed under the seat are free.

Most of the flights are good through Nov. 13-14, but MSP to Colorado Springs is good only through Sept. 30, and MSP to Jacksonville through Oct. 3.

John Ewoldt • 612-673-7633

about the writer

about the writer

John Ewoldt

Reporter

John Ewoldt is a business reporter for the Star Tribune. He writes about small and large retailers including supermarkets, restaurants, consumer issues and trends, and personal finance.  

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