How Stackable Discounts Actually Work
Retailers frequently advertise promotions such as "30% OFF plus an extra 10% at checkout". Many shoppers mistakenly assume this equals a 40% total discount ($30\% + 10\%$). In reality, retailers calculate secondary discounts sequentially.
The primary 30% discount is applied first to the original price. Then, the extra 10% coupon is applied to the reduced subtotal, not the original price. This produces an effective discount of 37% ($1 - 0.70 \times 0.90 = 0.37$), saving you ā¹924.63 instead of ā¹999.60 on a ā¹2,499 purchase.
ā¢ Savings = Original Price Ć (Discount % Ć· 100)
ā¢ Sale Price = Original Price ā Savings
Double / Sequential Discount:
ā¢ Intermediate Price = Original Price Ć [1 ā (Dā Ć· 100)]
ā¢ Final Price = Intermediate Price Ć [1 ā (Dā Ć· 100)]
ā¢ Effective Discount % = [1 ā (1 ā Dā/100) Ć (1 ā Dā/100)] Ć 100
Worked Example: ā¹2,499 Item with 30% + 10% Promo
Step-by-Step Breakdown
- Original Price = ā¹2,499.00
- Primary 30% discount = $2499 \times 0.30 =$ ā¹749.70
- Price after primary discount = ā¹2,499 - ā¹749.70 = ā¹1,749.30
- Secondary 10% coupon = $1749.30 \times 0.10 =$ ā¹174.93
- Final Price = ā¹1,749.30 - ā¹174.93 = ā¹1,574.37
- Total Savings = ā¹749.70 + ā¹174.93 = ā¹924.63 (37.0%)
Shopping Tips to Maximize Savings
Bank & Card Cashbacks
Stack instant credit card discounts (typically 10% up to ā¹1,500) on top of end-of-season sales.
Compare Unit Pricing
Always check price per kilogram or liter. Larger "discounted" packs are occasionally more expensive per unit than standard sizes.
Frequently Asked Questions
Multiply the original price by the discount percentage and divide by 100 to find the savings. Subtract the savings from the original price to find the final sale price.
Stackable discounts do not simply add together. For example, 30% off plus an extra 10% off does not equal 40% off. The 10% discount is applied to the already discounted price (70%), yielding a true total discount of 37%.
A discount reduces the selling price for the buyer, while a markup increases the cost price to determine the selling price for the seller.