I love a good BOGO deal. This “buy one, get one” sales strategy offers shoppers a free or discounted product when they purchase another product of the same or higher value. And it’s become a standard practice for boosting sales – one I often recommend to clients – because when it’s done right, it works.

Here are just three reasons why I’m such a fan of BOGO promotions:

  • Efficient inventory management. BOGO offers are a quick way to clear out excess inventory like seasonal merchandise or slow-moving products. These promotions also offer opportunities for up-selling and cross-selling.
  • Brand value is not affected. An initial 50% discount on a product might create an impression that its value is lower than it originally was. But with BOGO, the main product is sold at full price – maintaining its original perceived value.
  • Easy-peasy implementation. A BOGO promotion requires no advance planning. For example, I have a client that has a big bin at the checkout counter in which they place their seasonal leftovers. The bin is marked “Take 1 Item as our holiday gift to you (minimum purchase of $50.00 required)”. No relabeling, no preparation. And yes, people actually spend $50.00 just to get the BOGO.

How can you get the most from your BOGO promo? Follow these 5 best practices:

  • Clarify your offer. Set specific conditions for your BOGO offer, such as which items are eligible for the discount, minimum order value and any exclusions that might apply.
  • Promote it prominently. Communicate the details of your BOGO early and often. Even the best promotion strategy will fall flat if it’s not easy to understand and highly visible. 
  • Consider the impact on your bottom line. BOGO discounts can be a great way to drive sales, but it’s important to evaluate the impact on your profitability. Make sure the offer is financially viable for your business.
  • Be sure it makes sense. BOGO deals work best when they revolve around complimentary products. For instance, a music store may offer a set of picks for free with a purchase of a specific guitar set. If they offered free drumsticks instead, it wouldn’t make much sense, would it?
  • Make the offer time-limited. Creating a sense of urgency can help drive sales. Set a deadline for the promotion or limit the number of discounted items available. If you can combine the BOGO deal with an upcoming season or holiday – even better!

Keep in mind that not every BOGO is effective for every business. Try testing several types of offers such as “buy one, get one 50% off” or “buy two, get one free” to determine what resonates with your customers. With the right strategy and a little creativity, BOGOs can be surprisingly simple and effective tools for boosting sales – and building loyalty.