Buy one get one free BOGOF

Buy one get one free (BOGOF) is a sales promotion where a customer who buys a specified item receives a second one at no extra cost. For example, a bath bomb shop might run BOGOF on its space-themed bath bombs.

Why businesses use BOGOF

A free item makes the deal look better value, so BOGOF can encourage sales. It can also increase habitual use: customers buy more of the product, get used to using it and are more likely to buy it again. It helps a business sell selected stock quickly, such as a range that is being replaced. BOGOF can also encourage new customers to try a product and attract customers away from competitors, which can increase market share.

Drawbacks of BOGOF

BOGOF reduces the profit margin on the selected items because two items are sold for the price of one. It can increase wastage if customers stockpile items and do not use them all, especially with perishable goods. Frequent offers can cheapen the product or brand image, making it seem less special. Customers may also take the free offer without coming back, so the promotion may bring in less revenue or profit than the business hoped.

Worked example: a stationery shop sells a notebook for £4. With BOGOF, a customer gets two notebooks for £4, so the shop receives an effective price of £2 per notebook. It must sell many more to cover its costs and make the same profit. If the offer clears old designs and brings in students who return, it can still be worthwhile.