Does Harvey Norman Calculate % Discounts Correctly?

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wreck90

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Topic # 68101 14-Sep-2010 22:35

Our local HN had a sale on this evening.

I bought a picture frame, which was listed at $50, with a 25% discount.

I did a quick calc in my mind, and worked out that 25% of $50 is $12.50, so the sale price should be $37.50.

But, I was charged $40.00. I questioned this, and , she showed me her screen which showed their calculation - they are doing this calculation.....

$50 / 1.25 = $40.

I did not really want to argue, as it was only $2.50 and a long line was forming behind me so I just accepted the cashiers argument.

I however, think my calculation is correct, but Harvey normans have been applying this calculation to all of their discounts tonight.

Lucky it was not a big screen TV :)

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Reply # 379905 14-Sep-2010 22:36

What is the exact wording of what they promise you?

Richard rich.ms

robbyp

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Reply # 379921 14-Sep-2010 22:55

wreck90: Our local HN had a sale on this evening.

I bought a picture frame, which was listed at $50, with a 25% discount.

I did a quick calc in my mind, and worked out that 25% of $50 is $12.50, so the sale price should be $37.50.

But, I was charged $40.00. I questioned this, and , she showed me her screen which showed their calculation - they are doing this calculation.....

$50 / 1.25 = $40.

I did not really want to argue, as it was only $2.50 and a long line was forming behind me so I just accepted the cashiers argument.

I however, think my calculation is correct, but Harvey normans have been applying this calculation to all of their discounts tonight.

Lucky it was not a big screen TV :)

If it was $50 and they were to take 25% off the price, then they have made an error. Instead they have only discounted it by 20%

richms

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Reply # 379923 14-Sep-2010 22:56

Unless the promise was to come in today otherwise you could pay 25% more next week, which is correct for what they have done.

Richard rich.ms

robbyp

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Reply # 379953 14-Sep-2010 23:42

richms: Unless the promise was to come in today otherwise you could pay 25% more next week, which is correct for what they have done.

Yes that is correct, although I have not seen any discount marketed in that way.

Jarno

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Reply # 379958 14-Sep-2010 23:55

Did they type in this calculation manually, or was it done automatically by their checkout system?

You missed a chance to blow their minds by asking what a 50% discount and then a 100% discount would come out to.

wiredr

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Reply # 379978 15-Sep-2010 06:00

wreck90: Our local HN had a sale on this evening.

I bought a picture frame, which was listed at $50, with a 25% discount.

I did a quick calc in my mind, and worked out that 25% of $50 is $12.50, so the sale price should be $37.50.

But, I was charged $40.00. I questioned this, and , she showed me her screen which showed their calculation - they are doing this calculation.....

$50 / 1.25 = $40.

I did not really want to argue, as it was only $2.50 and a long line was forming behind me so I just accepted the cashiers argument.

I however, think my calculation is correct, but Harvey normans have been applying this calculation to all of their discounts tonight.

Lucky it was not a big screen TV :)

$50 / 1.25 = $40. = 20% discount

$40 * 1.25 = $50 = 25% markup

clearly they are wrong .

sbiddle

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Reply # 379979 15-Sep-2010 06:19

It's clearly wrong in this case but with it's not uncommon to find retailers who get discounts wrong. One common one is "we'll pay your GST" where retailers simply deduct 12.5% off the retail price which is infact incorrect.

wreck90

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Reply # 379983 15-Sep-2010 07:00

richms: Unless the promise was to come in today otherwise you could pay 25% more next week, which is correct for what they have done.

There was no complexity here, it just had a big red card, with 25% off written on it.

Yes, I should have asked here what a 50% discount would be. But, I was thinking, she would have been giving the wrong discount to everyone.

eracode

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Reply # 379984 15-Sep-2010 07:02

This is something that should be reported or officially complained about by someone who has been affected - it's simply unacceptable, morally wrong, misleading etc etc.

They should not get away with it and I'm almost tempted to go and buy something (small) so that I am affected and could complain.

wreck90

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Reply # 379985 15-Sep-2010 07:07

Jarno: Did they type in this calculation manually, or was it done automatically by their checkout system?

You missed a chance to blow their minds by asking what a 50% discount and then a 100% discount would come out to.

I'm not actually sure - I didn't pay attention until the price was not what I expected.

She was adamant the price was right because her computer says it was so, and I did not want to hold up a line arguing over $2.50.

It reminds me a bit of the TV comedy Little Britain, and the hospital administrator who believes the computer is 100% correct :)

tardtasticx

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Reply # 380012 15-Sep-2010 09:06

Why dont they do it easier like:

[price]-([price]x0.[percentage]) = Final sale price

in this case

50-(50x0.25) = $37.50

Always use methods like this in exams because it just seems easier on the eye when going over working.

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tardtasticx

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Reply # 380013 15-Sep-2010 09:08

eracode: This is something that should be reported or officially complained about by someone who has been affected - it's simply unacceptable, morally wrong, misleading etc etc.

They should not get away with it and I'm almost tempted to go and buy something (small) so that I am affected and could complain.

Exactly. Imagine if they did this to every customer. They'd make a fortune with the amount of people going through those doors each day

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wellygary

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Reply # 380037 15-Sep-2010 10:29

sbiddle: It's clearly wrong in this case but with it's not uncommon to find retailers who get discounts wrong. One common one is "we'll pay your GST" where retailers simply deduct 12.5% off the retail price which is infact incorrect.

Yes, but in that case you are actually getting a better deal than they advertise :), Tey are paying "your GST", and they are giving you an additional 1.388..% discount

6FIEND

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Reply # 380070 15-Sep-2010 11:31

wellygary:
sbiddle: It's clearly wrong in this case but with it's not uncommon to find retailers who get discounts wrong. One common one is "we'll pay your GST" where retailers simply deduct 12.5% off the retail price which is infact incorrect.

Yes, but in that case you are actually getting a better deal than they advertise :), Tey are paying "your GST", and they are giving you an additional 1.388..% discount

...And the same principle works in reverse with the GST increase. Retailers are saying 12.5% is going up to 15% so there will be a 2.5% price rise.

...but x + 15% is only 2.2% more expensive than x + 12.5%

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Reply # 380145 15-Sep-2010 14:12

I once heard at a conference that a study in Australia (ok, I know!) showed that 50% of the general population didn't understand what 50% meant. It's not that uncommon for this kind of thing to happen. I doubt it's intentional, just someone doesn't know what they're doing.

I would've queried it until I got them to understand and got the refund, but I doubt it would've made any difference to the rest of the customers. They would've reverted back to their calculation once you'd left. They're hardly going to do $50/1.33333 are they? Where the hell did the 1.33333 come from?!!? Trying to teach them $50 x (100% - discount) probably wouldn't fly either.

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