"Percent off" VS. "Dollars off"

The biggest key to what makes a coupon interesting to the majority of us is perceived value. This is the "Wow" factor when you cannot believe they would give you this kind of deal. Part of you knows its may be too good to be true (and often is) but they got over the first hurdle and they got your attention. One of the tricks marketers with use is using a percentage off versus a specific dollar amount off.

Percentage off

• Customers generally like percentages off because this can translate in to a large dollar savings on a bigger item
• Businesses usually dislike percentages off because they are more difficult to plan for (if you buy a pack of gum at 50% off, it may cost them $.50 but if you save 10% off a TV it may cost them $100)
• Can be very valuable on big purchases but can be deceivingly low value on cheap items
• Can be off of a single item, entire purchase, or individual product
• Often used as headlines to grab your attention
• Make sure to check exclusions for exclusions and limitations
• The more you spend, the more absolute value they have

Dollars off

• Many Customers do not like them as much because they feel like their savings are limited (and they are)
• Businesses love these because they are much easier to account for in a budget since they have a defined value
• Often have stipulations that you need to spend a certain amount to get that discount
• Can be off a single item, entire purchase, or individual item 
• Can translate to a huge percentage savings on smaller items, but may be a drop in the bucket on bigger purchases
• The more you spend, the less relative value they have

Pay close attention to each of these as they can vary greatly based on what you buy. Marketers know that and will distribute coupons based on a specific behavior they are trying to get out of you. They may show "50% off!" in giant letters at the top of an offer to get your attention. Once you read further you may see that you only get 50% off the second item or on your next trip. Not noticing these details can make all the difference. Understanding some of the basic differences can help you know when to use which kind so you can maximize your savings.