Beware the 'Buy 1, Get 1 Free' trap


I went on a shopping expedition with some friends last night and, like many other shoppers was lured in by a a rack at H&M bearing the following sign: "Buy 1, Get 1 Free" with the usual caveat that the free item must be of equal or lesser value.

I picked out some shirts and stood in line for about 15 minutes while the customer in front of me argued with the cashier about the way she was being charged for her "Buy 1, Get 1 Free" purchases. The cashier patiently explained that, if she really wanted to, she could save some money by paying for everything separately, which would require about nine separate transactions. What?

Here's how it works. Let's say that you buy four items from the "Buy 1, Get 1 Free" sale, with the following prices:

  • $20
  • $20
  • $10
  • $10

The cashier explained that you would pay for $20 items and then get the $10 pieces free -- a total of $40. But in a wonderful bit of alchemy, you can save $10 by splitting the order into two transactions, with one consisting of the two $20 items and the other the two $10 items: Buy one for $20, get the other $20 piece free, and then the same with the $10 items. Your total? $30. Total savings? $10.

Why would a company engage in such misleading sales tactics? They know that most people won't notice and, even if they do, many won't bother splitting each order into a bunch of orders, scanning their card five times, and waiting. Either that, or these companies don't have the technology to program a computer to group higher priced items together when calculating discounts. Given that researchers have created a computer that can understand jokes, I somehow doubt that's the case.

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Last updated: February 10, 2012: 04:06 PM

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