Here is the scenario I'm sure everyone is familiar with. I am debating on whether or not to buy a gift certificate at a discounted rate from a popular coupon site. Am I doing the math right on this? Here are the details for said coupon in question..
$25 gift certificate for $15 for a local restaurant. Stipulations for using coupon are $35 minimum purchase and 18% gratuity added before discount.
Let's say I spend the absolute minimum to be able to use the coupon..
- Meal..............................$35.00
- Gratuity (18%).............$6.30
- Total before discount....$41.30
- Minus discount............($25.00)
- Plus cost of coupon.....$15.00
- Adjusted toal...............$31.30
- Net money saved.........$3.70
Now let's say I spend $60 at the restaurant...
- Meal.............................$60.00
- Gratuity (18%).............$10.80
- Total before discount....$70.80
- Minus discount............($25.00)
- Plus cost of coupon......$15.00
- Adjusted toal.................$60.80
- Net money saved.......$(0.80)
I would have actually spent 80 more cents when using the coupon?