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BOGO

What is buy one get one (BOGO)?

Buy One, Get One (BOGO) is a sales promotion where the purchase of one item is rewarded with a second item of the same product for free. Generally speaking, shoppers tend to overvalue the benefits of a ‘free’ product even when compared to higher-quality items sold at a discounted rate, which is why the BOGO sales tactic has become so popular. Using a BOGO discount technique creates a sense of urgency and encourages customers to make a purchase.

Frequently Asked Questions

  • How does a BOGO sale work?

    A BOGO sale works by allowing customers to pick up a free product when another item is purchased at full price. For a BOGO promo to be successful, it’s important for companies to have a targeted audience they’re selling to; creating a target audience can help cut costs and time, since you know exactly who you’re focusing on rather than trying to appeal to everyone. 

    Once an audience has been established, brands can create urgency around their sale by running the BOGO for a limited time and incentivizing shoppers to head to the checkout.

  • Are BOGO sales usually successful?

    Ecommerce companies running BOGO deals usually have wonderful success throughout the promotion, especially if they’re sitting on a large amount of deadstock they’d like to clear out of their warehouse. Not only does BOGO pricing convert more new customers than other discounts (i.e. half price markdowns), it’s known to increase profits, as well. What’s more, Buy One, Get One Free marketing can really fuel business by encouraging shoppers to switch from a competitor’s brand and take advantage of your unbeatable offer. 

  • Is using a BOGO sale effective?

    For both online stores and in-person retailers, BOGO sales are an incredibly effective strategy. That’s because they support profitability while also liquidating overstocked or lower-quality inventory items. When well-executed, BOGO promotions bring about higher sales, bigger orders, and better conversion rates, since BOGO offers benefit the consumer, too. 

More terms and formulas

Other Commercial Off-the-Shelf (COTS) See definition and examples
Other Made To Stock See definition and examples
Orders Pick and Pack See definition and examples

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