How a Pre-Sale Price Can Make a Discount Look Bigger

One tactic shoppers watch for before major sales is raising an item’s price, then advertising a discount from that higher price. The markdown may be real in arithmetic: a product listed at $120 and later offered for $80 is marked down by one-third. But if it sold for $80 before the temporary increase, the “deal” may simply restore its earlier price.

The trick works through a reference price—the number people use as a mental benchmark. A large crossed-out price makes the sale price feel like a rare bargain, even when shoppers have no reason to know what the item normally costs. Retailers also compete for attention during crowded sale events, so a bold discount can be more persuasive than a plain price.

Why the Price History Matters

A single sale label cannot show whether a discount is meaningful. The useful comparison is the item’s price over time, including its price in the weeks before the event. Checking several retailers can reveal whether the supposed markdown is unusually low, merely typical, or higher than a recent price elsewhere.

This doesn’t mean every Black Friday discount is fabricated: retailers can cut prices to attract shoppers, clear inventory, or compete with other sellers. It means the advertised percentage is not the same thing as the savings. The price you would actually have paid without the promotion is the better benchmark—and a quick look at the item’s recent prices can turn a dramatic sale tag into a much clearer decision.