
We dropped a stat this week that stopped Nate in his tracks: brands can see up to 42% more sales just by framing discounts the right way. No new ads, no extra products...just choosing percent off vs. dollar off at the right moment. In Episode 105, we...
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A
Am drinking a Red Bull infused strawberry lemonade. So that should bounce things out.
B
Okay. That's odd. Doesn't even sound delicious.
A
Makes these. You go and order one, they pour a Red Bull in, put lemon in, and put strawberries in.
B
That's how you can tell it's high quality. That was a quality restaurant that you just went to. They just have Red Bull on tap to, like, pour into whatever you wanted in. That's a lot. Okay. Wow.
A
Welcome back to Brain Driven Brands. You guys missed the 8 minutes and 39 seconds of me and Sarah rambling.
B
Oh, my God.
A
Recording. But we're gonna start the episode here. Sarah, how are you?
B
I actually have something for you that I hopefully everybody's gonna be super excited about. We're gonna do another science quiz today.
A
Yeah, let's go.
B
Because it's that kind of a day where I'm like, we're just gonna do something fun and enjoyable.
A
I'm determined to do better on these quizzes.
B
Okay. All right. This one I don't know if you're gonna be able to get because it's. It involves two different psychological marketing tactics. I feel like I, without giving you a ton of context in this, is gonna be a little difficult to get. But here's the quiz. So you can increase sales by up to 42% when you split test one particular piece of your marketing.
A
Oh, you know, big, big split testing guy.
B
Big split test. So you got to think of this as, like, it's in the same marketing topic, but it's two different split tests. You can increase sales by up to 42% just by split testing. This one particular thing is it.
A
If a company hires Nate Legos to be their CMO or not, how would.
B
That be a split test? Who are they split testing it with, is the question.
A
Well, like, one company is going to do it and the rest won't, so.
B
So we're split dusting against the entire industry. No, it is not.
A
Oh, because that would increase sales by more than 42%.
B
I mean, accurate, but also no.
A
Okay. All right. Does it have to do with your, like, landing page, your ad traffic destination?
B
No, it is not. It is not a physical entity. Think more strategy.
A
Okay.
B
It's a strategy split test. This is, like, a very timely one too, because this is about to be something that a lot of people are going to test during this specific period of the year. That was actually a really good hint. Oh, yeah. You're on the right track. You're on the right track. Yep. Yep.
A
Either, like, how big of a Discount to run or like whether you run one or not.
B
Oh, that's so close.
A
All right, hit me.
B
Okay, so sales were up to 42% higher during one split test. 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.
A
Oh, I actually have very strong opinions about this.
B
Oh, okay. I'm so ready to get into it because I was like, this is fascinating. Okay, so tell me your opinions.
A
Okay, so this is saying when it's site wide, say percentage off.
B
Yes.
A
When it's on a specific thing, say a dollar amount off. Yeah, I've always heard and done that. Like you say whatever number is bigger. So like at OG, I've seen that too. Like 30 off does not sound as good as a hundred dollars off.
B
Yep.
A
But on a watch that costs 300 bucks, like, they're the same thing. So we always went with a dollar amount because our. Yeah, our dollar amount was always higher than the percentage amount.
B
Okay. And that technically, yes, 100. So in that particular test, you. You're using it correctly because there's another study, there's so many studies. There's another study that talks about the fact that if your product is over a hundred dollars, you should use a dollar off, like discount. If your product's under a hundred, use a percentage. This is specifically saying if you're using a promotion for everything that you have, go for a percent. If you're just discounting one thing, go for a dollar.
A
Yeah, that makes sense.
B
That's so interesting.
A
Do you think it has to do with just being like, clear? Like, it's just easier to comprehend. Like, hey, it's 30% off site wide. Rather than it being like, well, it's a hundred off for this. It's 120 off for this. It's 80 off for this.
B
Yeah, well, according to this particular study, it has to do with the fact that there's a wider range of choice. So the amount of decisions you have to make comes into play here. When you have a site wide, like, discount that you're running specifically for like any big sale, like Black Friday, it sounds like the large amount of choices causes us to like, really worry about making a good decision. And so if each and every one of those products had their own discount, you wouldn't be able to look at all of them and say, this is a good deal. This isn't. So blanket it. If you have a lot of saying.
A
Like, everything is 30% off, so you don't have to worry about where you're getting the best deal 100%.
B
Yeah. Yeah. So that way you don't have to do math, you don't have to calculate it. It's literally just like, I can, I can make this, like, judgment call in my head, which is really interesting.
A
I think that that kind of theme of like, just removing, like, decision fatigue or decision, like, overwhelm, whatever, like, I think that's so important. This time of year, I see people roll out Black Friday offers that are like, saved 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. They're thinking too much.
B
Well, we can go do a deep dive conversation about Black Friday if you want an offer generation in particular, because I typically see maybe five different offers. Percent discount, dollar discount, some sort of a bundle or bogo.
A
Yep.
B
I. I rarely see tiered offers, which I'm like, oh, that's the. One of the more interesting offers that I wish people would go for, which is like, spend 100, get 20. Right. Spend 200, get 40. Those type of things. And then the last one. Oh, what was the last one that I just saw? Oh, freebies. Yeah. Like free gifts.
A
Yeah.
B
Yeah. So there's typically only five different things that people run, but I've watched people try and combine them in the way that you're talking about. It confuses the crap out of me when people do this and I hate it.
A
Yeah, we always, we always kept the advertising message consistent. Like from November 1st until Christmas, we said, it's a hundred off, Go buy.
B
Interesting.
A
That's it. Now we did some more unique things to our email and SMS list. And we did some more unique things on site as well. Like we'd either do flash sales on individual products where we would say, like, hey, it's an extra $50 off this watch today. And then we would do a free gift card with purchase before Thanksgiving because we wanted people to buy earlier. We wanted to incentivize people to buy earlier because we know people that buy before Black Friday have a higher ltv.
B
Yeah.
A
The people who bought after. But again, like, the only advertising message we put out the whole time was 100 off, 100 off, 100 off. Because we didn't want.
B
Yeah.
A
Anyone to be confused. It's like, nope, you're saving a hundred bucks.
B
Just when I appreciated that you guys do that. Just because, like we talked about before, I don't think you should ever combine these offers of like, get 25 off. And then also Get a free gift and then, but only if you buy these products. Like just, 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.
A
Yeah.
B
Of all these different things that you could possibly get. Okay, question for you. Have you ever tried doing a sitewide discount and some sort of a bundle? Let's pause for just a minute.
A
Prospecting on Meta in 2025 has been a huge pain. Reaching net new people is getting harder and harder and harder. And the only thing meta seems to is rolling out more AI slot features that take away a lot of our controls as advertisers. So brands have been looking for another side and they're turning to otherside. Other side is an agency that figured out how to turn programmatic advertising into a performance marketing channel. They're able to advertise outside the meta ecosystem, show clear and accurate attribution, and they have the ability to prospect and retarget across platforms. So you're able to unlock huge new audiences that aren't like us. They're not chronically on Meta and Instagram. For brain driven brands listeners, they're running a crazy offer right now. They'll run your ads for free for two months to prove to you it works. Then you can either part ways or continue at their normal affordable retainer. But they're making this risk free and it's a no brainer for you to try. So go to jointheotherside.com and let them know we sent you.
B
And now back to the show running at the same time so that people can opt into both.
A
Yeah. So the way we did it is like we pre built the bundles as like just like a product that you can, can buy.
B
Like basically one product. Okay.
A
Yeah. And then those bundles were always like they're a better dollar and percentage off amount of the whole site wide. Things like site wide could be a hundred off or 34% off the bundles. Because we put five watches together, we'd be like save 600 bucks on it. And we just merch them like in our collections.
B
Yeah.
A
And we've had, we've done really well with bundles this year.
B
Yeah, you guys did do really well.
A
Something that I didn't think was gonna happen because like before 24 months ago, like no one bought more than one watch from us. But yeah, the bundle stuff crushed.
B
I can't wait to see what you do with bundles. Like with some of the other brands you're working with this year. Okay, follow up question, which is a little more higher level for you.
A
Yeah.
B
So now we have all these bundles, we have all these different discounts, all this stuff. How do you decide which one of these to go with? How did you decide on, like, a hundred dollars is perfect for what we.
A
Yeah, you should. You should have been testing different offers for the last nine months.
B
So. Okay, so you choose one based upon what worked previously.
A
Y.
B
You don't choose it based upon what we need to make up in revenue this year or, like, goals that we're trying to hit for the business or like, any of the.
A
I mean. Yes, but like, that's what we tested all year. Like.
B
Okay, I see what you're saying.
A
Like, like, we're, you know, constantly testing new acquisition offers.
B
Yeah.
A
The one that performed the best in, you know, six out of the last nine months is going to be the one that works the best for Black Friday too. So now the only. The only kind of time we, like, adjust for, like, business needs is once we get into December, if certain SKUs are either under or over selling will adjust. We'll move the prices up if they're underselling. We'll discount deeper if they're underselling.
B
Yeah.
A
But no, like, ultimately, all of our offers, I think, should produce the most profit per session. That's how we judge and offer. So whatever. Squeezing the most profit out of a site visitor is the one we want to go with.
B
Okay, well, and that's the reason why I asked that question, because I had somebody this week ask me, like, how do you pick which, like a dollar off discount or percentage discount, a bundle of, like, which one of these should I pick? And my response was, we got to figure out exactly what you want to do for the business during Black Friday, because Black Friday is revenue generator. Like, it's. You're going to get massive amounts of people in here, massive amounts of cash flow. I need you to decide which one of these offers is going to benefit you guys the best and also, like, be a good marriage for what the consumers are expecting.
A
Yeah.
B
So most of the time, I just see people just pick one. They pick one randomly.
A
Let's go over some other Black Friday offer. Red flags.
B
Red flag. Oh, okay.
A
Because like, that all the time, if someone is just like, they picked something that sounded good.
B
Yeah.
A
It's like, well, you have any clue if that's gonna work?
B
Yeah.
A
A red flag for me is when I see companies go, like, too deep, like, oh, they 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.
B
Like, I've seen some offers that are up to 60% off.
A
And I'm like, yeah.
B
Why. Why would you go that steep on this even if you have good margins on it? I'm just like, that's a lot.
A
Well. And like, now that. So I've got a little side hustle that I'm messing around with. Right. I'm gonna increase my prices in Q4 and not run. Yeah.
B
Okay. Explain the, the strategy behind this. Why you.
A
Because people are gonna buy anyway.
B
Yeah.
A
I'm like, so convinced that shopping that time of year is like no longer based on the deal. And people are just used to spending money that time of year. So I'm gonna try to take extra margin and see what happens. Like, I just don't think you need to discount that steep.
B
Yeah.
A
Because the other thing is half the brands aren't already. Half the brands are putting a fake markup on their products.
B
Yes. Oh, that would be my biggest red flag.
A
Yeah.
B
Is that they're. They're starting to like, mark things up in a weird way. Which. Spoiler. That's actually illegal.
A
Illegal. Yeah. I can't.
B
You have to. What did I see? You have to actually for. And I am not a lawyer. Everybody take that into account.
A
Something like, you have to prove something like 90 days for that price for.
B
At least two particular period out of.
A
The last 90 days or something. Yeah. Yeah.
B
It has to be on your site somewhere so that people can prove that this was a. An original price of some sort. Now how long that is. I've seen 90 days, I've seen six months. Like, I've seen all kinds of different moving.
A
Yeah.
B
So in general, though, you can't just like, randomly, willy nilly all this. Like, you'd have to do what Nate's doing, which is start now, raise your prices now, keep it on tap for a good month, and then discount from there. But interestingly enough, the, the second red flag I've seen is people sequence things in a weird way. Like they'll roll. They roll out their Black Friday offers in kind of a sneaky way to try and get people to purchase things in waves. So for instance, one of the brands that I was working with last year, they had this thing where they launched all of their ads for the first week and then they went back and basically told everybody again that this was the launch again. So they announced the launch in week one, announced it again in week two. And then announced it again in week three. It didn't just like roll forward where it was like, now everything's live and we just leave it. They kept announcing it.
A
Was it the same? Did like, did any price or offer change?
B
Not that I remember, but I just, I found it really odd where. Because they were just saying like, our Black Friday event has now started. But they kept saying it again and again and I was like, technically that's not true because you've already started it three weeks ago.
A
Yeah, interesting. You know, I'm a fan of launching it early because I think most purchasing decisions happen before the day. But yeah, like we would launch it on the first and then we just say for the entire month, like, hey, the sale is still on. Like, get it now. And then were actually running a better than Black Friday sale from the first through the Thanksgiving, which by the way is the right thing to do. Ripped for us last year. So we got to, we got like reverse urgency out of it. We could tell people that the better than Black Friday sale was ending for a week.
B
Oh, fascinating. And that, that I'm assuming that you did the right thing and you like made the discount a little less enticing for the rest of the month. Like it actually was the best. Okay, thank you.
A
Yes. So we did given out. We were giving out I think 50 gift cards with purchase before. Like that was a part of the deal that was better. So the price or the discount of a watch didn't change, but we took that gift with purchase away.
B
Okay. All right. Yeah, that.
A
So it truly was better. We didn't run a better deal than that all year because we're backs.
B
So another sequencing thing that I see that's big red flag to me is when people extend it where it's like Friday sales ending and then it's like, let's extend it for another three weeks.
A
Please don't listen. Let me go off on the sale extended emails because too many of you are being so hacky and you are destroying, first of all, you're destroying the advertising industry. You're making all of our jobs harder. You're making all of our brands less credible than they should be and it's for sure short term gains.
B
Yes.
A
That sale extended email will work three times.
B
Yep.
A
But the next time you have real urgency, people are not going to respond the way you want them to. And like, there's just no reason to burn that trust all at once for like one extra emails revenue. What we did and what I'd like to do is like our Cyber Monday sale typically run through Wednesday.
B
Oh, interesting.
A
We tell people that. We tell them Sunday night when it comes out and says, hey, the cyber sale starts now, ends Wednesday at midnight. And then it really ends Wednesday at midnight. So you can run it for longer if you want, but just be honest about people about when it's ending, because there will be a time in the future where you have a real urgent or scarcity thing to communicate.
B
Yes.
A
And if people know you're liars, then it's not gonna.
B
Yeah, I see this way way too often. And that's probably one of the bigger kind of, like, faux pas that I constantly have to advise people against. Do whatever you say you're gonna do. Don't extend it just to make an extra, like, buck, because you're gonna be able to sell those people again in six weeks. Like, don't worry about it. The cash is gonna be there. I would so much rather you build trust and credibility. Your reputation is all you have in this industry. And that goes for, like, people who are just, like, randos. Like, it's like Nate and I and brands. If your reputation gets damaged, that's it. You. You're not coming back from that very easily. Like, look at Budweiser. Literally still having a hard time. Literally coming back from trying to shift in ways that they probably shouldn't have shifted. Yeah.
A
I. I saw that stat the other day that I think Michelob Ultra is now the, like, bestselling.
B
Yes.
A
Light beer. And it's like, for my entire life, Bud Light was untouchable.
B
Yes.
A
And it was the light beer. And all of a sudden it's not.
B
Yeah. And it's really struggling.
A
If you ruin your brand's reputation, whether it's doing what they did or being super hacky in the email account. Like, people are not going to respond well over time.
B
No. Well, on Black Friday is the time period where you really need to set down your reputation because they're going to remember you from based upon how you act during the highest sale period of the year. People know these companies are making crap, tons of cash right now. Get it. They understand it. But if I'm going to continue to, like, stay with you as a consumer, I need to experience something in the Black Friday era where it makes me think that, okay, this is a good company to stick with. Yeah.
A
Do you know, I think people forget sometimes in my soul what everybody on your email list wants to buy from you.
B
Yeah.
A
They wouldn't be there.
B
Yeah.
A
If they didn't. At least some part of them wanted to Buy something from you. So, like, why are you pushing it?
B
Yeah, just slow down. Like, slow down. I think we talk about that a lot on this podcast. Please slow down. Like, I know you want growth and, like, I know Nate talks about his 150% growth year over year, every single.
A
Episode, but I'm a free agent, by the way.
B
Even Nate has had some years where we didn't grow that much. So, like, don't. I. I don't want anybody to take this as, like, oh, well, you guys are saying that we shouldn't try and, like, sell.
A
No, no, try. But just calm down and let me also be clear. Feel free to send a ton of emails. I think last Black Friday, we sent 12 to most of our list.
B
12 is a ton to you.
A
12 emails in one day?
B
Oh, in one day. I thought about the whole month. I was like, it's not that many.
A
No, we sold.
B
Okay. Yeah, yeah, yeah. That's a lot. That's a lot.
A
Yeah, we sent 12 in one day. But each one was unique and we had a reason for sending it. And each segment that got it was, like, meant to get that email. So I'm not saying don't go hard on email. Go hard on email. Just be honest about what you're doing and make sure the messages you're sending are relevant and true.
B
Bars. Bars. I think we could probably just end it.
A
This turned out to be a good episode. We're going to cut Black Friday 10 minutes that we recorded today, but then we did 20 minutes that were really, really good. Offer structure for Q4.
B
I love it. Yeah, that's all I got. Great.
A
Thanks for listening. Shout out tether and other side for the sponsorships.
B
Appreciate you, other side. Thank you so much for joining us on the show today. Appreciate you guys listening. If you want to follow me, I'm Sarah Levinger. Anywhere you consume content, he is Nate Legos. If you like this show and if you like this episode, go ahead and, like, subscribe. Share with a friend. Drop us a review when you have a minute. We would appreciate it. Otherwise, have a great week. We'll see you next time.
Episode: When to Use % Off vs. $ Off Discounts
Host: Sarah Levinger
Date: October 2, 2025
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 Insight:
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:
Key Insight:
Strategic Tip:
Pro Tip:
“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)
“They're starting to like, mark things up in a weird way. Which...That’s actually illegal.” — Sarah (12:36)
“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)
Memorable Example:
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)
| 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 |
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.