Double discounts have been gaining in popularity are many retail stores and this weekend I saw my first example of double discounts at a grocery store. Double discounts are a trick that retailers use to make many people believe they are getting a better deal than they truly are. This is how it works.
If you are in a store and are buying a $100 dress, would you want 45% off the dress, or 20% off with 30% additional taken off at the register? Most people look at this and add the 20% and 30% which equals 50% and assume that this is the better deal and that they are getting 50% off the item. Unfortunately, this is not true as the math shows. A 45% discount off of $100 means the dress sells for $55. A 20% discount off of $100 is $80; then taking 30% off that $80 leaves you with an additional $24 discount. The total comes to $56, or a dollar more.
While this double discount only earns the store a few pennies on each transaction, it seems they are beginning to see if this trick is worth their while in increasing their profit margin. Remember to always take your calculator to the store with you and to work out the math so you don't think you're getting a better deal than you actually are.