Are 'half Pay Back' promotions what they really seem to be?
What is “Half Pay Back”? The promo says “Spend 200 and get 100 back”.
I wonder if everyone really knows the actual paybacks we get to enjoy here. I wasn’t fully aware either until yesterday when I did an exclusive promo shopping (by choosing clothing, footwear and bags which come under the promo) at a popular department store in Qatar.
I have already decided on a budget of QR. 200 at the start of our shopping and proceeded expecting to pay only half of the total purchase I make as the retailer promised half pay back. I thought I could use the QR.100 vouchers as discount and grab items worth QR.400…
I tried my best for the perfect bet. Five items totaling QR.440/- were chosen. They included:
- Two bags (149+69) = 218/-
- Two footwear (54+69) = 123/- and
- One Abaya = 99/-
Total (5 items) = 440/-
However to my surprise, the young lady sitting at the billing advised me to pay the full amount so that she can issue a QR.200 voucher. She further explained that they issue QR. 100 voucher for every 200 bill that can only be redeemed for your next purchase inside the same promo sections. Now I was not ready to spend more than QR.200/- at this retailer. Which meant that I had better split the purchase into two bills and also ditch one item worth QR.100/- and thus stay within the budget. And that’s how the Abaya (priced QR. 99) found its way back to the rack.
Thus the bags stayed in the first bill (QR.218) generating it’s QR. 100 voucher, which was then redeemed in the footwear bill (QR.123)
Ultimately, I spent QR. 241 while buying items worth QR.341.
And now the moment of truth… The percentage of bill I actually paid is (241/341)*100 = 70.7%
The discount then becomes = 29.3%
Even if I make an ideal purchase (that is two strict bills of 200 and 100), the maximum discount that I could get is just 33.33% AND NOT 50%!
(1-200/300)*100 = 33.33%
We know each retailer would set their own original price and selling prices depending on factors like customer behavior or festive events. Often they will simply modify the original price in a way as to make customers believe that they are getting a good bargain.
But my point is simply this that the “Half Pay Back“, although technically correct, is still highly misleading, at least for me. We love getting a great deal, but more importantly we love to believe that we are getting a great deal. According to consumer behavior analysts, sometimes we may actually enjoy being duped. Research has long suggested that finding a bargain on an item we were not planning to purchase can too be intensely gratifying.
So to prick that self-gratifying bubble a little, here’s reminding you that while enjoying #HalfPayBack promo sales, keep in mind that your actual discount is around 30% only; and that is not “half” or never 50% of your total bill.
Cheers!
Hi, had to comment on this. Half of QAR 341 is QAR 170.50. Half price of QAR 200 is QAR 100. The promo was spend 200 and get 100 back "to spend" and not deducted from your bill.,Which makes the total cost as QAR 300 for merchandise worth QAR 400. Half price is your gross bill deducted by 50% and not your net bill. In this offer your half price is on the net and not the gross which is why you make less than 50%.
This store sell Kids foot wear for 220 QR, same item i can find in another leading store for 10-15 QR.
This is a good post. Serves as a reminder.
Its a simple math that retailer is offering 33.33% discount only if you spend Qr 200 shopping. But this is a marketing tricks to attract more customers. To be honest with you they are successful as you will find whole Qatar is rushing to their outlets and each counter is having so much rush that if you join them it can be a killometer long que. I personally found their sale prices r even more expensive them some european branded shop sales.
Actually it is not a half price. It is only 33.33% discount even they are allowed to take promotion items. so they loss only profit for half pay back system. great think from management.
last christmas sale one store had a buy one take one offer so i went and bought a wrist wrap and got 2. which i paid like 59QAR.
when i got home i noticed there are "Multiple" tags on the box. one is 39qar and the other is 49qar. and the sale price is 59qar.
i called the branch to ask why and they immediately gave me Qar 200 voucher. im not even asking for a voucher. I got no explanation why there's multiple tags, they just said they don't cheat price and to show their sorry they will give 200 voucher. It was funny and alarming at the same time.
Always make sure you buy for your needs not because somebody is selling it cheap ...... ...... ........... Take care next time ............ You may keep your card at home & leave your wallet in your car ...... ........ this way no body will ever be able to cheat you ......... in a shopping mall .......................
one shopping mall was selling refrigerator for 1000 with discount coupon for 300, where as other shop gave the discount straight away at 700, but both advertise the same price!!! The idea is that they will get the profit for 300 also.
Were you really expecting honesty from retailers ?
It is all a ploy .. That's why they have small print