Gift with Quantity Purchase + Buy X Get Y
Learn how to Combine Quantity Purchase and Buy X Get Y to boost AOV this BFCM
Last updated
Learn how to Combine Quantity Purchase and Buy X Get Y to boost AOV this BFCM
Last updated
Offering customers great deals is an effective way to boost sales, but when you combine two strategic promotions, you amplify their excitement and motivation to buy.
Combining Gift with Quantity Purchase and Volume Discounts creates a dual incentive that encourages customers to buy more while feeling they’re getting extra value. Here’s how each promotion plays a part:
Gift with Quantity Purchase: In this approach, customers receive a free gift once they buy a specific number of items. This tactic pushes customers to increase their order quantity, as they are motivated to reach the required amount to unlock the gift.
Volume Discount: A discount is applied when customers purchase larger quantities of a product, such as “Buy 5, Get 10% off.” This discount incentivizes bulk purchases by making each item more affordable when bought in higher volumes.
Together, these promotions drive higher spending by offering both a cost-saving discount and a free gift. For products often bought in multiples or bulk (e.g., skincare, snacks, office supplies), this strategy proves especially effective by creating an irresistible deal.
This combination works because it addresses both practical and psychological customer motivations, making it a powerful sales driver:
Tangible Savings: The Buy X, Get Y promotion offers a clear financial incentive, encouraging customers to purchase more in exchange for a free or discounted product. This makes spending more feel like a smart, cost-saving choice.
Added Value Perception: The Gift with Quantity Purchase builds excitement by giving customers a reward for reaching a specific threshold. By offering something extra for free, customers perceive greater value in their overall purchase, motivating them to hit that target.
This dual strategy appeals to customers' desire for deals and rewards, leading to larger cart sizes and a significant boost in your store’s average order value (AOV)
Combining Gift with Quantity Purchase and Buy X, Get Y can significantly increase sales, but it’s important to ensure your promotions remain profitable. Here's a simple way to calculate profitability while running both promotions:
Profit = (Revenue from Buy X, Get Y purchases − COGS of purchased items) − COGS of free gift
You need to account for:
Revenue from Buy X, Get Y: Multiply the total number of items sold (both paid and free) by their retail price to get your total revenue.
COGS of purchased items: Calculate the cost of producing or acquiring the items customers paid for.
COGS of the free gift: Include the cost of the gift you’re giving away based on the quantity purchase threshold.
By balancing the costs of both the free gift and the discounted items with the expected increase in sales, you can maximize the effectiveness of this combination while maintaining healthy profit margins.
A customer buys 3 t-shirts at $20 each without any promotional offers.
Revenue: $20 × 3 = $60
COGS of t-shirts: $8 × 3 = $24
Total COGS: $24
Profit: Profit = Revenue - COGS $60 - $24 = $36
Average Order Value (AOV): The customer bought 3 items, so the AOV is: $60 ÷ 3 = $20 per item
In this case, the AOV remains at $20 per item, and the total revenue is $60.
Now, with both the Buy 2, Get 1 Free and Gift with Quantity Purchase promotions, the customer buys 5 items (3 paid t-shirts, 1 free t-shirt, and 1 free hat).
Revenue: $20 × 3 = $60
COGS of t-shirts: $8 × 3 = $24
COGS of the free t-shirt: $8 × 1 = $8
COGS of the free hat: $5
Total COGS: $24 (paid t-shirts) + $8 (free t-shirt) + $5 (free hat) = $37
Profit: Profit = Revenue - Total COGS $60 - $37 = $23
Average Order Value (AOV): The customer bought 5 items, so the AOV is: $60 ÷ 5 = $12 per item
While the AOV per item is lower at $12, the customer purchased more products overall, resulting in more revenue generated and higher perceived value.
In the example where you combine Buy X, Get Y and Gift with Quantity Purchase, the Average Order Value (AOV) for the entire transaction actually stays the same ($60), but when we calculate the AOV per item, it appears lower because the customer is receiving more items without paying for all of them.
Here’s why:
In Scenario 1 (without the promotion), the customer buys 3 items and pays $60, making the AOV per item $20 ($60 ÷ 3 items).
In Scenario 2 (with the promotion), the customer still pays $60 but receives 5 items (3 paid + 1 free t-shirt + 1 free hat). The total AOV per item becomes $12 ($60 ÷ 5 items) because they received more products but didn’t pay more money.
When you offer Buy X, Get Y or give out free gifts, customers are getting more products for the same price (or less), which can lower the AOV per item. However, this doesn’t mean it’s a bad thing. Here’s why:
What we’re focusing on is AOV per transaction, not AOV per item. In both scenarios, the customer is spending $60, but in the second scenario (with promotions), they are receiving more items, which:
Moves more inventory.
Enhances the customer’s perception of getting a great deal.
Increases the likelihood of repeat business due to customer satisfaction.
Thus, while the AOV per item decreases, the AOV per transaction remains the same, and the store benefits from higher inventory turnover and customer loyalty.
Scenario 1 (No Promotion):
AOV = $60 (3 items).
AOV per item = $20 ($60 ÷ 3 items).
Scenario 2 (With Promotion):
AOV = $60 (5 items total).
AOV per item = $12 ($60 ÷ 5 items).
So, while the AOV per item drops to $12 in Scenario 2, the total AOV remains $60, and you’ve moved more products in the process.
Moving More Inventory: The main goal of promotions like Buy X, Get Y and Gift with Quantity Purchase is to increase the number of items sold, clearing more stock.
Perceived Value: Customers feel like they are getting a better deal, which enhances their satisfaction and can drive future purchases.
Higher Total Sales: While the AOV per item decreases, the total sales volume (total number of items) increases, which is valuable for businesses aiming to clear stock or increase customer engagement
The perceived drop in AOV per item doesn’t negatively impact the business—what matters is that customers are buying more and leaving satisfied. This is especially important for merchants looking to clear inventory or promote new products, as the real success metric here is AOV per transaction and the increased sales volume.
The best products for combining Gift with Quantity Purchase and Buy X, Get Y (BXGY) are items that:
Are frequently bought in large quantities or multiples: These are items where customers can easily justify buying more to qualify for the promotions.
Have a moderate price point: Ensuring customers can afford to buy the required quantity to unlock both the free gift and the BXGY deal.
Complement each other or are part of a larger collection: Products that are frequently used together or in sequence make it easier for customers to buy more to reach the thresholds for the promotions.
Combining Gift with Quantity Purchase and Buy X, Get Y promotions offers a powerful way to drive larger purchases, boost customer satisfaction, and increase your store’s average order value. With the right strategy and execution, these dual incentives can help you create an exciting shopping experience while maintaining strong profit margins.
