How does the concept of “Buy one get one free” works in marketing? How does this strategy prove profitable for companies?
In: Economics
As each product is priced, it’s priced with the outgoings in mind + extra to make profit. So production + transport + shop bills etc + profit = total price. Usually before a buy one get one free offer comes on, the price will be increased to inflate the profit %. After a little while, the BOGOF offer will come on for a short period of time and be heavily advertised such as front shelves of supermarkets & adverts & shopping magazines etc. Then once the promotion/offer is over, the hope is that more people will continue to buy it when the price goes back to normal.
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