A Question on Deals with Minimum Spend Requirements

Hey guys, this is probably a dumb question… but for a deal of say X percent off with minimum spend requirements, is the X percent off before or after the minimum spend?

For example - if a deal says 20% off, with minimum spend $100, does that mean…

  • you can buy something priced at $100 and pay $100x(1-20%)=$80, or
  • you have to buy something priced at $125 and pay $125x(1-20%)=$100?

I have always thought it is the second one, but two people told me today that it is the first, which made me confused.

Thanks.

Comments

  • +1

    first one

  • +1

    It's going to depend on the rules for each business but most of the deals I know of, it is option 1.

    For example if a specific promotion has a qualification amount of $100, the discount gets applied to the total and the final checkout amount is under $100.

    I used to think it worked the other way but after talking to staff at the relevant stores I figured out how things worked.

    This applies to online orders only with most companies.

    The stores I mainly deal with for these types of promotions are Coles, Woolworths, Target, Masters and Ezibuy.

  • +1

    First option. You have spent up to their minimum amount (eg. $100), therefore you will receive (e.g 20%) off.

  • +1

    Thanks for the quick replies guys. I always thought it was the second one as the word "spend" sounds more like what you end up paying, rather than what the original prices are… but guess I was wrong.

    • You're not wrong, the store's copywriter (more likely copy-paster) is. However, the consumer gets the better deal, so few grumbles.

      My gripe is with competitions with sloppy copy:

      "Complete the entry form above to win your very own All-New Mazda MX-5 1.5L Roadster GT and the Ultimate Driver's Getaway in Queensland."

      Criteria to win a car and holiday? Complete the entry form. Yay!

      PayPal do it right:
      "Be a winner like Jim. Chance to WIN $30,000!"

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