Podcast Summary: Brain Driven Brands

Episode: When to Use % Off vs. $ Off Discounts
Host: Sarah Levinger
Date: October 2, 2025

Episode Overview

In this episode, Sarah Levinger dives deep into the psychology and practical application of pricing tactics, specifically the nuances of offering percentage-off versus dollar-off discounts. Leveraging insights from neuromarketing and real-world examples from 9-figure brands, the discussion centers on which approach works best, when, and why—especially during the high-stakes Q4 and Black Friday period. This episode is packed with actionable strategies e-commerce brands can adopt to optimize offers, captivate customers, and sustainably grow revenue.

Key Discussion Points & Insights

1. The Split Test That Can Drive a 42% Sales Lift

• [00:53] The Science Quiz: Sarah quizzes her co-host (Nate) about the single split test that can boost sales by up to 42%.
• [02:34] The Answer: Sales rose sharply when brands use percentage-off discounts for sitewide promos, and dollar-off discounts for single product offers.
  • “When you use specifically percentage off for a promotion that is store wide, but dollar off for a promotion that's specific to one product.” — Sarah (02:34)

Key Insight:

• For storewide events, simplify the math for customers with percentage-off (e.g., 30% off everything).
• For individual products, lead with dollar-off (e.g., $100 off), especially when the dollar figure feels substantial.

2. The Psychology Behind Discount Types

• [03:26 - 04:55] Why This Works:
  • Choice overload is real—customers, when faced with many options, are more likely to engage with simple, clear offers.
  • Percentage-off works best for sitewide sales because “you don't have to do math, you don't have to calculate it… [customers] can make this judgment call in their head.” — Sarah (04:46)

Notable Quote:

“I think that that kind of theme of like, just removing… decision fatigue or decision overwhelm… I see people roll out Black Friday offers that are like, ‘save $25 and get this gift with purchase if you buy one of these things,’ and it's like, hey, you lost them already. It's too complicated.”
— Nate (04:55)

Practical Application:

• Sitewide = % off: Reduces cognitive load, especially during busy sales periods.
• Single Product = $ off: Feels more significant when the number is large.

3. Offer Simplicity & Sequencing for Black Friday

• [05:22 - 06:12] Nate and Sarah list common Black Friday offers: percent discount, dollar discount, bundles/BOGO, tiered offers, and freebies.
• Consistency is crucial:
  • “We always kept the advertising message consistent...from November 1st until Christmas, we said, it's a hundred off, Go buy.” — Nate (06:02)
• Segmentation for channels:
  • Unique sales for email/SMS lists, like flash sales or pre-Black Friday gift cards, help drive earlier conversions and boost customer lifetime value.

Key Insight:

• Keep public advertising simple and consistent; use segmentation for more targeted, complex offers behind the scenes.

4. Bundles & Advanced Offer Structuring

• [08:34 - 09:11] Bundles are growing in popularity and efficacy.
  • Pre-built bundles outperform individual sitewide offers (e.g., "save $600 when you buy five watches together").
  • “The bundle stuff crushed.” — Nate (09:11)

Strategic Tip:

• Build and feature bundled products prominently, especially if customers may buy more than one.
• Give the bundles a more compelling savings headline than the standard discount.

5. Offer Testing & Profit Optimization

• [09:36 - 10:45] How do you choose your offer?
  • “You should have been testing different offers for the last nine months.” — Nate (09:36)
  • Pick the offer that brings the most profit per session, tested throughout the year.
  • Adjust deep discounts only when inventory is moving slower than expected in December.

Pro Tip:

• Continuously test offers outside of peak season so you know what will work best on Black Friday.
• Adjust in real time, if needed, based on inventory status.

6. Biggest Black Friday Offer "Red Flags"

• [11:22 - 14:45] Sarah and Nate riff on risky, confusing, or credibility-killing tactics:
  • Discount Depth Overkill:

    “A red flag for me is when I see companies go...too aggressive. And I don't think they have to. They go half off for the weekend. And I'm like, you didn't have to do that.” — Nate (11:33)

  • Fake Markdowns:

    “They're starting to like, mark things up in a weird way. Which...That’s actually illegal.” — Sarah (12:36)

  • Offer Sequencing Confusion:
    • Re-announcing the same sale multiple times or never-ending “extended” sales reduces trust.

    “Please don't… you are destroying, first of all, you're destroying the advertising industry... you’re making all of our brands less credible…” — Nate (15:30)

7. Building Trust & Long Term Brand Equity

• [16:16 - 17:54] True urgency and honesty beat fake scarcity every time.
• Clean cut-off times and truth in messaging maintain customer trust, even if running longer sales.
• “[Your] reputation is all you have in this industry. If your reputation gets damaged, that's it. You're not coming back from that very easily.” — Sarah (16:45)

Memorable Example:

• Bud Light’s lasting reputational damage is cited as a cautionary tale for brands who “jam” their customers or act unpredictably.

8. Email Cadence & Channel Honesty

• [18:19 – 19:46]
  • Don’t abuse “sale extended” tactics.
  • Segment emails thoughtfully—sending many targeted, relevant emails works, as long as the messaging is honest.
  • “We sent 12 [emails] in one day. But each one was unique and we had a reason for sending it.” — Nate (19:25)

Notable Quotes & Memorable Moments

• On Discount Clarity:
  “Just make it super simple. But I also appreciate the fact too that you guys took into the account that you had different product prices at different ranges, but the offer was still a hundred bucks off.” — Sarah (06:58)

• On Offer Overcomplication:
  “…combine them in the way that you're talking about [multiple offers layered together], it confuses the crap out of me when people do this and I hate it.” — Sarah (05:52)

• On Honesty and Urgency:
  “Do whatever you say you're gonna do. Don't extend it just to make an extra, like, buck... I would so much rather you build trust and credibility.” — Sarah (16:45)

• On Email Marketing:
  “Go hard on email. Just be honest about what you're doing and make sure the messages you're sending are relevant and true.” — Nate (19:46)

Timeline of Important Segments

| Timestamp | Segment / Topic | |-----------|----------------------------------------------------------------------------------------------| | 00:53 | Intro to the “science quiz” and the main split test insight | | 02:34 | The answer: % off sitewide vs $ off individual products (core of episode) | | 04:42 | Discussion on decision fatigue and the importance of simple offers | | 05:22 | Types of Black Friday offers—the main categories | | 06:02 | Consistency in advertising & messaging | | 08:34 | Bundling strategies and their efficacy in recent years | | 09:36 | How to decide which offer to use—importance of year-round testing | | 11:22 | Red flag: Making random, untested or overly deep discount offers | | 12:36 | Red flag: Fake markdowns and legal risks | | 13:08 | Red flag: Confusing sequencing and repeated “launches” | | 15:30 | Red flag: “Sale extended” emails and erosion of urgency/trust | | 16:45 | Building trust—honesty in deadlines and urgency; brand reputation case study (Bud Light) | | 18:19 | The psychology of the customer list—don’t push, trust they want to buy | | 19:25 | Email strategy—yes, send a lot, but segment and tailor honestly |

Actionable Takeaways for E-commerce Brands

• Match offer type to promotion scope: % off for sitewide, $ off for individual products—test and use the bigger perceived value.
• Be clear, be simple: Don’t overcomplicate Black Friday offers or combine too many elements.
• Test year-round: Your best Black Friday offer is the one that has worked best in the previous months.
• Bundles work: Especially if you can make the savings headline big and the logic simple.
• Respect honesty and urgency: Don’t fake discounts, fudge timelines, or extend sales—you’ll burn trust.
• Segment and personalize email: Frequency is fine if each message is relevant and credible.

Final Thoughts

This episode offers a masterclass in Q4 offer design from a neuromarketing and operational perspective. Sarah and Nate not only walk through the science but also ground it in the hard realities of e-commerce, providing a toolkit both strategic and practical for brand leaders seeking sustained and credible growth.

For more insights, follow Sarah Levinger and subscribe to Brain Driven Brands wherever you get your podcasts.