Promotions
Why a 50% discount might not be a good deal
A discount is a comparison with a reference price. Your savings depend on whether that reference means anything.
A store says an item is 50% off. That tells you how the sale price compares with a reference price selected for the promotion.
It does not automatically tell you whether the item is inexpensive, whether the reference price is typical or whether a competitor is selling the same item for less.
If you would not buy the product at the current price without the sign, you probably do not need the sign to make the decision.
First, check the regular price
In Canada, the term ordinary selling price matters.
The Competition Bureau explains that sellers cannot invent an inflated regular price solely to make a discount look impressive. Advertised regular-price comparisons have rules tied to whether the product was actually sold or offered in good faith at the claimed price.
That does not mean every crossed-out number is fictitious. It means a percentage-off claim needs context.
For a product you are considering, check recent prices at other sellers, the manufacturer’s list price if relevant and whether the version or model number is identical.
A discontinued colour, older model or smaller package can make a price comparison look more generous than it is.
Compare the final checkout total
Imagine a hypothetical item listed at $100 with a 50% discount. The displayed sale price is $50.
Now imagine that a mandatory $15 non-government fee is only revealed at checkout. The total before applicable taxes is $65, not $50.
That difference is more useful to your wallet than the percentage in the headline.
The Competition Bureau describes this kind of practice as drip pricing, when a price consumers cannot actually obtain is advertised because unavoidable additional fees appear later. Government-imposed purchaser charges, such as sales taxes, are treated differently under the rule.
Always compare the same final cost, including required fees, delivery and any purchase conditions.
Read the restrictions before celebrating the coupon
Discounts may exclude specific brands or products, require a minimum spend, apply only to new customers or expire at a precise time.
A coupon can also be incompatible with an existing sale, another code or a cashback tracking session. Do not assume promotions stack unless the current terms say they do.
A common mistake is adding items you did not plan to buy just to cross a minimum-spend threshold. The arithmetic only helps if you needed those extra items anyway.
Ask whether the “limited time” claim is real
Fake urgency can be another distraction. The Competition Bureau’s guidance on fake sales and discounts identifies problematic tactics such as misleading countdowns, repeated claims that a discount will end and false scarcity signals.
You do not need to conduct a legal investigation to make a sensible buying decision.
Save the price, check a second seller and ask whether the same promotion was available last week. A short delay can reveal more than a flashing countdown ever will.
A better three-question test
Before buying a discounted product, answer:
- Would I buy it at this final price without the percentage-off label?
- Is the same or an equivalent product cheaper elsewhere?
- Are there conditions that make the discount harder or more expensive to use?
If those answers still support buying it, the promotion may be genuinely worthwhile.
If not, the biggest saving might be simply keeping your money.