If I have $30 in ‘bonus bucks’ added onto a $300 gift card, is it the equivalent of a 10% discount?
Mar 04, 2010
in
Discount Gifts
If I have $30 in free money added to a $300 gift card, is it the same thing as a 10% discount, or would it be a 9.1% discount?
Example — if I use my $330 gift card to make a $10 purchase, would it be the equivalent $9 being spent, or $9.10?
Can you please use formulas to prove your point?
Thanks!!
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One comment
Lauren F on March 4, 2010 at 4:23 pm
Well, it means you got a 10% bonus.
Basically, each $10 you would have received can now be used to purchase $11 worth of goods.
Think of it as a reverse of sales tax. Say sales tax in your state is 10%. If you buy something for $10, you pay $10 x 10% for sales tax = $10 x 1.10 = $11.
If you know the price including tax ($11) divide that by 1.1 to get the base price of the item.
So, if you are buying a $10 item, you divide $10 by 1.1 to get what the “prebonus” value was. In other words $9.09.